Using the information in Ex 5-26 on page 373 and 374, what would be the entry to close out those temporary accounts with credit balances-journal entry #1 in the closing journal entries process? Select one: a. Dr. Inventory $2,550, Dr. Purchase Discounts $37, Dr. Purchase Returns & Allowances $110, Dr. Sales $38,200 and Cr. Income Summary $40,897 b. Dr. Purchase Discounts $37, Dr. Purchase Returns & Allowances $110, Dr. Sales $38,200 and Cr. Income Summary $38,347 c. Dr. Sales $38,200 and Cr. Income Summary $38,200 d. Dr. Inventory $6,600, Dr. Purchase Discounts $37, Dr. Purchase Returns & Allowances $110, Dr. Sales $38,200 and Cr. Income Summary $44,947 *Exercise 5-26 Preparing an income statement-periodic LO7 CHECK FIGURE: C. Loss = $1,183 The following is John's Electronics' adjusted account information listed in alphabetical order for the month ended April 30, 2020. A physical count on April 30, 2020, revealed a merchandise inventory balance actually on hand of $2,550. Account Debit Credit $ 2,208 16,500 $ 2,050 730 130 27,225 507 9,650 6,600 201 Accounts payable ........ 154 Accumulated depreciation, trucks 101 Cash 611 Depreciation expense, delivery trucks 633 Interest expense 301 John Yu, capital. 302 John Yu, withdrawals 119 Merchandise inventory.. Purchase discounts.. 506 Purchase returns and allowances 505 Purchases. 413 Sales........... 414 Sales returns and allowances. 688 Telephone expense, office 689 Telephone expense, store 508 Transportation-in. 153 Trucks... 623 Wages expense, office 624 Wages expense, selling Totals 37 110 17,040 38,200 1,830 150 430 470 30,500 5,800 8.900 $84,280 $84,280 We've updated our read alou Give it a try here Required a. Calculate net sales. b. Calculate cost of goods sold. c. Prepare a classified multiple-step income statement for the month ended April 30, 2020