Recent content by JKRB

Inventory is an asset account, that means it's a permanent account. It is not closed at the end of the accounting period. Only nominal (temporary) accounts such as revenues, expenses, dividends and owner draws are closed at he end of the accounting cycle.

Sales $195,216, Dr Sales 195,216 Cr Income Summary 195,216 Sales Discounts $2,296, Dr Income Summary 2,296 Cr Sales Discounts 2,296 Cost of Goods Sold $106,718, Dr Income Summary 106,718 Cr Cost of Goods Sold 106,718 Merchandise Inventory $43,237. Merchandise Inventory is an asset...

Sales $195,216, Dr Sales 195,216 Cr Income Summary 195,216 Sales Discounts $2,296, Dr Income Summary 2,296 Cr Sales Discounts 2,296 Cost of Goods Sold $106,718, Dr Income Summary 106,718 Cr Cost of Goods Sold 106,718 Merchandise Inventory $43,237. Merchandise Inventory is an asset...