During the closing process, the closing entry to reduce the sales revenue normal account balance to
requires the revenue account be debited.

Question

During the closing process, the closing entry to reduce the sales revenue normal account balance to 
 requires the revenue account be debited.

BlackTom AI · Accepted Answer

Revenue accounts have a normal credit balance, so to reduce the sales revenue account to zero you must debit (decrease) that account in the closing entry.

1. Relevant knowledge points and concepts
- Temporary accounts (revenues, expenses, dividends) are closed at period end so their balances become zero for the next period.
- Revenue accounts normally carry credit balances; to decrease a credit balance you make a debit entry.
- The typical closing sequence: a) Close revenues to Income Summary (debit revenues, credit Income Summary); b) Close expenses to Income Summary (debit Income Summary, credit expenses); c) Close Income Summary to Retained Earnings; d) Close Dividends to Retained Earnings.

2. Step-by-step reasoning process
- Sales revenue is a temporary revenue account with a credit balance.
- The closing entry must remove that credit balance by recording a debit for the same amount.
- The offset is typically a credit to Income Summary (or directly to Retained Earnings if using a single-step close).
- After the debit entry, the sales revenue account balance equals zero.

3. Example with intermediate steps
- Suppose Sales Revenue = $10,000 (credit balance).
- Closing entry: Debit Sales Revenue $10,000; Credit Income Summary $10,000.
- After entry: Sales Revenue: Credit $10,000 - Debit $10,000 = $0.
- Income Summary now has a $10,000 credit to be offset by closing expenses and transferring net income to Retained Earnings.

4. Why the correct answer is correct
- The objective of a closing entry for revenue is to reduce the account balance to zero so it does not carry forward. Debiting the revenue account accomplishes this because debits decrease credit balances.

5. Why other possible answers are incorrect
- “Retained earnings” or “income summary” are destinations of the offsetting credit, not the target balance of the sales revenue account. The sales revenue account must be reduced to zero, not to retained earnings or to income summary. Leaving it nonzero would fail the closing process.

6. Conclusion
- The closing entry to reduce the sales revenue normal account balance requires debiting the revenue account to bring it to zero. This matches the provided answer: zero.

During the closing process, the closing entry to reduce the sales revenue normal account balance to requires the revenue account be debited.未知题型

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