After posting the entries to close all revenue accounts and all expense accounts, the Income Summary account of Waif Services has a $4,000 debit balance. This shows that Waif Services earned profit of $4,000. True False Z-Mart had a gross profit of $340,000 based on sales of $700,000. Its cost of goods sold was $350,000. True False A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment. True False In a period of inflation, FIFO usually gives a lower taxable income and thus a tax advantage. True