A Merchandiser Uses a Perpetual Inventory System

question 30

Multiple Choice

A merchandiser uses a perpetual inventory system.The beginning Retained Earnings balance of the merchandiser was $95,000.During the year,Sales Revenue amounted to $75,000,Cost of Goods Sold was $30,000,and all other expenses totaled $12,000.The company declared and paid $19,000 as dividends.The last step in the closing process would include ________.

• A)a debit to Income Summary for $33,000
• B)a credit to Income Summary for $19,000
• C)a debit to the Retained Earnings account for $33,000
• D)a debit to the Retained Earnings account for $19,000

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Definitions:

Pulmonary Trunk

The major blood vessel that carries blood from the heart to the lungs for oxygenation.

Coronary Artery

A type of blood vessel that supplies blood to the heart muscle itself.

Pulmonary Vein

A vein that carries oxygenated blood from the lungs back to the left atrium of the heart.

Right Ventricle

The chamber within the heart that receives deoxygenated blood from the right atrium and pumps it into the pulmonary artery.