The Retained Earnings account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts?
A)Debit Income Summary $39,800; credit Expense accounts $39,800.
B)Debit Expense accounts $37,000; credit Retained Earnings $37,000.
C)Credit Expense accounts $39,800; debit Retained Earnings $39,800.
D)Debit Expense accounts $39,800; credit Income Summary $39,800.
E)Debit Income Summary $39,800; credit Retained Earnings $39,800.

Question

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The Answer of The Retained Earnings account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55,200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts?
A)Debit Income Summary $39,800; credit Expense accounts $39,800.
B)Debit Expense accounts $37,000; credit Retained Earnings $37,000.
C)Credit Expense accounts $39,800; debit Retained Earnings $39,800.
D)Debit Expense accounts $39,800; credit Income Summary $39,800.
E)Debit Income Summary $39,800; credit Retained Earnings $39,800.

The Retained Earnings Account Has a Credit Balance of $37,000