The contra-revenue accounts, Sales Returns and Allowances and Sales Discounts, should be closed

by crediting these accounts and debiting Income & Expense Summary for each account.

In a periodic inventory system, Inventory and Cost of Goods Sold accounts are kept up-to-date throughout the accounting period.

If ending inventory and cost of goods sold are added together, they should equal gross profit.

The purchases account is closed to the Merchandise Inventory account.

Cost of goods sold is a major expense of a merchandising business.

In the worksheet, the ending inventory amount will appear in the income statement credit column and the balance sheet debit column.

The determination of net purchases would include addition of transportation in account.

Which of the following accounts is closed by debiting the accounts?

In closing the cost of sales account and establishing the merchandise ending inventory, the balancing account would be____

Most probably, the last account which could be listed in the post-closing trial balance is_____