Question

A merchandiser has sales discounts forfeited of​ $100, cost of goods sold of​ $22,000, and other expenses of​ $1,100. The merchandiser uses a perpetual inventory system. The second entry in the closing process would include​ __________.

Answer 1

Answer:

debit cost income is $23000

Explanation:

given data

discounts = $100

sold =​ $22,000

expenses =​ $1,100

to find out

The second entry in the closing process

solution

we know that sale discount is $100 and other expensive is $1100

so total debit cost income is in 2nd entry would be here $100 +$1100 + good sold

so we say  in 2nd entry

debit cost income = $1200 + $22000

debit cost income is $23000

Answer 2

Here is the full question

A merchandiser has sales discounts forfeited of? $100, cost of goods sold of? $22,000, and other expenses of? $1,100. The merchandiser uses a perpetural inventory system. The second entry in the closing process would include? __________.

A. a credit to Income Summary for? $1,200

B. a credit to Income Summary for? $23,200

C. a debit to Income Summary for? $23,200

D. a debit to Income Summary for? $23,100

Answer:

D. a debit to Income Summary for? $23,100

Explanation:

Given data includes:

A merchandiser has-

sales discounts forfeited of​      ----->  $      100

cost of goods sold of​                ------->$22,000

other expenses of​                   -------->$   1,100

The second entry in the closing process would include :a debit to Income Summary for? $23,100 because the sales discount has been forfeited.

The third step is would include: making the income summary account to be equal to zero.