Question

fill in the blank question
review and complete the following statement regarding the income summary account. the income summary account is ______ (debited/credited) for the sum of all revenue accounts and is ____ (debited/credited) for the sum of all expense accounts and its balance will be transferred to the ______ (retained earnings/cash) account.

Explanation:

1. Revenue accounts have credit balances; closing them requires debiting revenues and crediting Income Summary to transfer the total revenue.
2. Expense accounts have debit balances; closing them requires crediting expenses and debiting Income Summary to transfer total expenses.
3. The Income Summary account's final balance (net income or loss) is closed to Retained Earnings, which accumulates a company's profits over time.

Answer:

1. credited
2. debited
3. Retained Earnings