Closing Entry For Expense Accounts
A company incurred the following expenses: $3,200 for salaries, $2,000 for rent, $500 for utilities, and $4,800 for raw materials. Which of the following is the correct closing entry for these expense accounts?
A
Credit $10,500 to the revenue accounts and debit $10,500 to the expense accounts.
B
Credit $10,500 to the expense accounts and debit $10,500 to the Income Summary account.
C
Debit $10,500 to the expense accounts and credit $10,500 to the Income Summary account.
D
Credit $10,500 to the revenue accounts and debit $10,500 to the Income Summary account.
E
Debit $10,500 to the revenue accounts and credit $10,500 to the Income Summary account.