A merchandiser uses a perpetual inventory system.The beginning Retained Earnings balance of a merchandiser was $100,000.During the year,sales revenue amounted to $75,000,sales returns and allowances were $1,000,sales discounts were $3,000,cost of goods sold was $40,000,and all other expenses totaled $10,000.The company declared and paid $25,000 as dividends.The last step in the closing process would include ________.
A)a debit to Income Summary for $54,000
B)a credit to Income Summary for $75,000
C)a debit to Retained Earnings account for $21,000
D)a debit to Retained Earnings account for $25,000

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The Answer of A merchandiser uses a perpetual inventory system.The beginning Retained Earnings balance of a merchandiser was $100,000.During the year,sales revenue amounted to $75,000,sales returns and allowances were $1,000,sales discounts were $3,000,cost of goods sold was $40,000,and all other expenses totaled $10,000.The company declared and paid $25,000 as dividends.The last step in the closing process would include ________.
A)a debit to Income Summary for $54,000
B)a credit to Income Summary for $75,000
C)a debit to Retained Earnings account for $21,000
D)a debit to Retained Earnings account for $25,000

A Merchandiser Uses a Perpetual Inventory System