After preparing the financial statements for the current year, the accountant for Exquisite Gems closed the Dividends account at year-end by debiting Income Summary and crediting the Dividends account. What is the effect of this entry on current-year net income and the balance in the Retained Earnings account at year-end? Select one: a. Net income is overstated and the balance in the Retained Earnings account is correct. O b. Net income is correct and the balance in the Retained Earnings account is overstated. O c. Net income is understated and the balance in the Retained Earnings account is correct. O d. Net income is understated and the balance in the Retained Earnings account is overstated