Bleeker Company has the following merchandise account balances: Sales $195,216,...

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Josh

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...Sales Discounts $2,296, Cost o? Bleeker Company has the following merchandise account balances: Sales $195,216, Sales Discounts $2,296, Cost of Goods Sold $106,718, and Merchandise Inventory $43,237. Prepare the entries to record the closing of these items to Income Summary. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
 
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 account. As an asset account, it is permanent and not closed out at the end of the accounting period.
 
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 account. As an asset account, it is permanent and not closed out at the end of the accounting period.
 
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