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A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $130,000. During the year, Sales Revenue amounted to $85,000,
A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $130,000. During the year, Sales Revenue amounted to $85,000, Cost of Goods Sold was $40,000, and all other expenses totaled $12,000. The company declared and paid $25,000 as dividends. The ending balance of Retained Earnings would be A. $188,000 B. $130,000 C. $138,000 D. $163,000
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