Answered: On credit side of Profit and Loss…

Business

Accounting

On credit side of Profit and Loss Account we record: Direct Expenses Direct Income Indirect Expenses Indirect Income

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 5DQ: What is the purpose of the Income Summary account? How does it relate to the revenue and expense...

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Question

On credit side of Profit and Loss Account we record:

Direct Expenses

Direct Income
Indirect Expenses
Indirect Income

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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