A Merchandiser Uses a Perpetual Inventory System

A merchandiser uses a perpetual inventory system.The beginning Retained Earnings balance of the merchandiser was $110,000.During the year,Sales Revenue amounted to $80,000,Sales Returns and Allowances were $2,000,Sales Discounts were $4,000,Cost of Goods Sold was $40,000,and all other expenses totaled $12,000.The company declared and paid $25,000 as dividends.The closing balance of Retained Earnings would be ________.

A) $111,000
B) $107,000
C) $98,000
D) $110,000