Question

A merchandiser has sales discounts forfeited of​ $600, cost of goods sold of​ $13,000, and other expenses of​ $4,100. The merchandiser uses a perpetural inventory system. The second entry in the closing process would include​ __________.

Answer 1

Answer:

Given that,

Sales discount forfeited = $600

Cost of goods sold = $13,000

Other expenses = $4,100

Expenses accounts:

= Cost of goods sold + Other expenses

= $13,000 + $4,100

= $17,100

Therefore, the second entry in the closing process is as follows:

Income summary A/c Dr. $17,100

       To Cost of goods sold            $13,000

       To other expenses                  $4,100

(To record the closing entry)