Collins Construction Co. uses the accrual basis of accounting. During the year, Collins reported $45,000 of revenue, $12,500 of expenses, and $1,200 of dividends. On December 31, Collins prepares all closing entries. The next effect on Retained Earning is a: A. Decrease of $1,200 B. Increase of $42,500 C. Increase of $31,300 D. Decrease of $13,700 Explain your