Questions: Assuming that all accounts have normal balances, the income summary account would be credited within the closing entry for which of the following accounts? Multiple Choice Deprecation Expense Accumulated Depreciation Sales Sales Returns and Allowances

The answer is the first one: Depreciation Expense.

Explanation for each option:

• Depreciation Expense: This is an expense account, and during the closing process, all expense accounts are closed to the Income Summary account. This means that the Depreciation Expense account would be credited, and the Income Summary account would be debited.

• Accumulated Depreciation: This is a contra-asset account, not an income statement account, and it is not closed to the Income Summary account. Therefore, it would not be involved in a closing entry to the Income Summary account.

• Sales: This is a revenue account, and during the closing process, all revenue accounts are closed to the Income Summary account. This means that the Sales account would be debited, and the Income Summary account would be credited.

• Sales Returns and Allowances: This is a contra-revenue account, and during the closing process, it is closed to the Income Summary account. This means that the Sales Returns and Allowances account would be credited, and the Income Summary account would be debited.

In summary, the Income Summary account would be credited for revenue accounts like Sales, not for expense accounts like Depreciation Expense. Therefore, the correct answer is Depreciation Expense, as it is the account that would be credited in the closing entry to the Income Summary account.