6. X Company is preparing its closing entries for 2020,following accounts at the end of 2020: Service Revenue $200,000 Operating Expenses $160,000 Dividends $10,000 and Retained Earnnings $15,000, In closing entry of Income Summary, Income Summary should be?

a. All Answers are Wrong.

b. Credited by $40,000.

c. Debited by $40,000.

d. Debited by $0.

7. X Company is preparing its closing entries for 2020,following accounts at the end of 2020: Service Revenue $200,000 Operating Expenses $160,000 Dividends $10,000 and Retained Earnnings $15,000, In closing entry of Income Summary, Retained Earninig should be?

a. Credited by $40,000.

b. Debited by $40,000.

c. Debited by $0.

d. All Answers are Wrong

8. X Company is preparing its closing entries for 2020,following accounts at the end of 2020: Service Revenue $200,000 Operating Expenses $160,000 Dividends $10,000 and Retained Earnnings $15,000, after preparing closingentries of revenues and expenses only, Income Summary balance before will be?

a. Debit $40,000.

b. Credit $30,000.

c. Credit $40,000.

d. Debit $30,000.

9. X Company is preparing its closing entries for 2020,following accounts at the end of 2020: Service Revenue $200,000 Operating Expenses $160,000 Dividends $100,000 and Retained Earnnings $15,000, IN closing entry of service revenue, Icnome Summary Should be?

a. Credited by $200,000.

b. Credited by $40,000.

c. Debited by $200,000.

d. Debited by 30,000.

10. X Company purchase merchandise inventory by $32000 on account terms 2/10, net30, after one week, X received credit by $1000 for merchandise returned, what is the entry of A/P payment using periodic system if it was paid after discount period (18 days)?

a. Debit A/P $31000 and Credit Cash $31000.

b. Debit A/P $31000, Credit Inventory $620 and Credit Cash $30380.

c. Debit A/P $31000, Credit Purchase Discount $620 and Credit Cash $31360.

d. Debit A/P $32000 and Credit Cash $32000.