What Is The Name Of The Temporary Account That Is Used To Summarize The Closing Entries For Revenue, Cost, And Expenses
Income Summary Account The name of the Temporary Account that is used to summarize the closing entries for Revenue, Cost and Expenses is Income Summary Account. All the revenue accounts are recorded on the credit side of income summary account while all the expense accounts are recorded on the debit side of income summary account. As a result, both revenue and expense accounts are zero out at the end of the accounting period as now these accounts have no balances to be transferred to the next accounting period. Income summary account is also closed to Retained Earnings Account after calculating Net Income / Net Loss for the period.