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:

Scientific Method

A systematic process for gathering and testing information used in science to explore observations and answer questions.

Subjectivity

The characteristic of relying on or being affected by one's own emotions, preferences, or views instead of objective realities.

Study Schedule

A study schedule is a planned allocation of study times and subjects, designed to enhance learning efficiency and academic performance.

Study Area

A specific space designated for reading, learning, and academic work.