ity accounts to the permanent 20. The entries that transfer the balances of the temporary owner's equity account are called b. c closing d. general journal entries. adjusting entries. closing entries. reversing entries. s to 21. The third step in the closing process is to transfer the balance the permanent owner's equity account? in which of the following account Revenue b. Expense Income Summary Owner's Capital d. owner's equity and drawing accounts are transferred to the permanent owner's equity account, which of the following accounts will have a balance? Expenses Revenues b. C. Owner's Capital d. Income Summary 23. Closing entries are made in the a. sales journal. b. purchases journal. c. general journal. d. cash receipts journal. 24. In view of past experience, it is expected there will be a loss due to uncollectible accounts of an amount equal to one-half of one percent of the sales on account during the year. If the sales on account amounted to $250,000, the estimated uncollectible account losses would be a. $25. b. $1,250. c. $2,500. d. $25,000. 25. The adjusting entry to record an increase in Allowance for Bad Debts involves a. debiting Allowance for Bad Debts and crediting Bad Debt Expense. b. debiting Accounts Receivable and crediting Bad Debt Expense. c. debiting Allowance for Bad Debts and crediting Accounts Receivable. d. debiting Bad Debt Expense and crediting Allowance for Bad Debts. 26. The accounting concept that states expenses should be recognized in the same period with the revenues they helped to produce is the a. contra-account principle. b. allowance method. c. matching principle. d. uncollectible accounts technique