Carpentry has apprenticeship programs.
Answer:
income summary 550 debit
retained earnings 550 credit
--to close income sumary against RE--
Explanation:
To complete the closing entries we should determinate the balance of the Income Summary account and then, transfer into Retained Earnings.
Income Summary
<u> Debit Credit </u>
2,450
<u> 3,000 </u>
Balance 550
We will debit income summary so his blanace ends in zero and credit retained earnings so net income is accumualted and added into equity to represent it in the balance sheet.
Answer:
Tabor
The effect of the write-off of the bad debt or uncollectible is a reduction of the 2019 net income by $1,281.
Explanation:
The write-off of the bad debt also reduces the Allowance for Bad Debts account balance and the Accounts Receivable balance in the account of Tabor by $1,281. The purpose is to accurately report Tabor's net income by taking into account all expenses and losses, just as all revenues and incomes must be accounted for. This gives a more accurate picture of Tabor's financial performance during the current financial period.
