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 Retained earnings $39,800.
B. Debit Income Summary $39,800; credit Expense accounts $39,800.
C. Debit Expense accounts $37,000; credit Retained earnings $37,000.
D. Credit Expense accounts $39,800; debit Retained earnings $39,800.
E. Debit Expense accounts $39,800; credit Income Summary $39,800.
Answer: B
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