I Am Having Difficulty With This Accounting Problem. Any Help Would Be Very Useful?

Bleeker Company has the following merchandise account balances: Sales $195,000, Sales Discounts $2,000, Cost of Goods Sold $105,000, and Merchandise Inventory $40,000. Prepare the entries to record the closing of these items to Income Summary. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.
I have been doing this for the last hour; maybe I’m just over thinking it. but it doesn’t seem to work out any way i do it. Please HELP!!!

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One Response to “I Am Having Difficulty With This Accounting Problem. Any Help Would Be Very Useful?”

  1. cactusge says:

    Try this, but my year of accounting classes dates 55 years back now:
    Credits: Sales $195,000 less $2,000 discounts.
    Debits: Cost of Goods sold: $105,000.
    Inventory is not an item in the P&L, but rather is an asset on the balance sheet.

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