Question 32 2.5 pts

The normal balance of Income Summary is:

It depends on the change of the inventory balance.

credit.

debit.

The account does not have a normal balance.

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Question 33 2.5 pts

The first entry to adjust Merchandise Inventory includes:

a debit to Merchandise Inventory.

a credit to Income Summary.

a credit to purchases.

a credit to Merchandise Inventory.

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Question 34 2.5 pts

The second entry to adjust Merchandise Inventory includes:

a debit to Merchandise Inventory.

a debit to Income Summary.

None of these is correct.

a credit to Merchandise Inventory.

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Question 35 2.5 pts

Unearned Rent is what type of account?

Expense

Revenue

Liability

Asset