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Elm Corporation had the following business transactions during the year: 1. Paid utilities bill from a previous month for $800 2. Purchased inventory on account
Elm Corporation had the following business transactions during the year: 1. Paid utilities bill from a previous month for $800 2. Purchased inventory on account for $2,000 3. Sold inventory costing $1,500 for $2,700 cash 4. Paid dividends of $1,200 to owners Which of the following is NOT part of the closing journal entries Elm Corporation would make at the end of the year to close the accounts involved with these transactions? O DEBIT to Sales Revenue for $2,700 O CREDIT to Dividends for $1.200 O DEBIT to Retained Earnings for $1.200 ODEBIT to Retained Earnings for $800 CREDIT to Cost of Goods Sold for $2,000
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