The company failed to record a dividend of $250,000 that was declared in 2014, but not been paid to shareholders as of December 31, 2014.

How would you Correct this journal entry:

a.

Debit: Retained earnings (-SE) $250,000

Credit: Dividends expense (+E, -SE) $250,000

b.

Debit: Retained earnings (-SE) $250,000

Credit: Dividends payable (+L) $250,000

c.

Debit: Retained Earnings (-SE) $250,000

Credit: Cash (-A) $250,000

d. No correcting entry is required

** Please explain the answer