1. Which of the following accounts is NOT used in the closing process under the periodic inventory system? a. Cost of Goods Sold b. Purchases C. Purchases Discounts d. None of these choices are correct. 2. The third step or journal entry of the closing process for a business with a periodic inventory system is to a. debit the retained earnings account for the balance of the dividends account and credit the dividends account. b. debit Income Summary for the amount of its balance (assuming net income) and credit the retained earnings account. c. debit each temporary account with a credit balance, such as Sales, for its balance amount and credit Income Summary d. credit each temporary account with a debit balance, such as the various expenses, and debit Income Summary