Question: In preparing closing entries, recall that ( 1 ) revenue accounts are debited for their balances and expense accounts are credited for their balances. The
In preparing closing entries, recall that revenue accounts are debited for their balances and expense accounts are credited for their balances. The difference
between the revenue and expenses is either credited revenues exceed expenses or debited expenses exceed revenues to the retained earnings account, and
the retained earnings account is debited for the balance of the dividends account.
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