A Merchandiser Reports Sales Revenue of $24,000 and Sales Discounts

Multiple Choice

A merchandiser reports sales revenue of $24,000 and sales discounts forfeited of $1,440.The merchandiser uses a perpetual inventory system.The first entry in the closing process would include ________.

A) a credit to Income Summary for $25,440
B) a credit to Income Summary for $24,000
C) a debit to Income Summary for $25,440
D) a debit to Income Summary for $24,000