At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end

Factory overheads $5,000 - Debit

Cost of goods sold $5,000 - Credit

Explanation:

Credit balance of overheads means over-applied overheads.  Hence, when it is not material amount, it will be closed in Cost of goods sold account.

Date   Accounts title and explanation      Debit      Credit

           Factory Overheads                         $5,000

                    Cost of goods sold                                 $5,000

           (For closing the overheads credit balance)

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best of luck,

the divergent