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depreciation expense account question

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Hi so i have a question on my deprecation expense account . year end i made a journal entry with debit and credit on accumulated deprecation account.

But now what happens to that deprecation expense account as it has that debit at year end , do i need to clear up somehow from that account .

QuickBooks Online

RainflurryAnswer

@Sonny209

You want to to leave the debit balance at year-end - it's no different from any other expense account. The depreciation expense account reduces your revenue to come up with net income. QB closes net income to retained earnings as of Jan. 1.

RainflurryAnswer

@Sonny209

You want to to leave the debit balance at year-end - it's no different from any other expense account. The depreciation expense account reduces your revenue to come up with net income. QB closes net income to retained earnings as of Jan. 1.

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