Crane Company has the following merchandise account balances at its September 30 year end:Cost of goods soldDelivery expenseMerchandise inventorySalaries expenseDateSept. 30$120,000Sept. 302,30022,00040,000SalesSales discountsSales returns and allowancesSuppliesPrepare the entries to close the appropriate accounts to the Income Summary account. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.List all debit entries before credit entries.)Account Titles and Explanation|$187,500(To close income statement account with credit balance.)9703,1002,300DebitCreditTOU

The journal entries that are made to close out temporary accounts and get them ready for the…

Answered: Crane Company has the following…

Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold Delivery expense $120,000 2.300 Sales Sales discounts $187,500 970

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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