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A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $95,000. During the year, Sales Revenue amounted to $75,000,
A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $95,000. During the year, Sales Revenue amounted to $75,000, Cost of Goods Sold was $30,000, and all other expenses totaled $12,000. The company declared and paid $19,000 as dividends. The last step in the closing process would include ________.
A.
a credit to Income Summary for $19,000
B.
a debit to the Retained Earnings account for $33,000
C.
a debit to Income Summary for $33,000
D.
a debit to the Retained Earnings account for $19,000
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