Question

Which one of the following accounts will be debited when making closing entries?

a. Cost of goods sold
b. Sales Revenue
c. Cash
d. Accounts Payable

Answer 1

b. Sales Revenue

Step-by-step explanation:

You need to close temporary accounts, i.e. those included in the income statement. Sales revenue is closed against income summary account, the same as cost of goods sold. But in order to close cost of goods sold you must credit the account, not debit it. Cash and accounts payable are permanent accounts that are not closed at the end of the accounting period.