![]() It improves your retained earnings account. If your payments are higher than your expenditures, you will debit your earnings summary account and credit your owned earnings account. Whether you debit or credit, your income summary account will rely on whether your earnings are more than your expenditures. Therefore, you must debit your revenue reserves to decrease it, which implies you must also credit your earnings summary account. You must know that revenue accounts are reduced by debits.
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