The Retained earnings account has a credit balance of $39,000 before closing entries are made. Total revenues for the period are $57,200, total expenses are $40,800, and dividends are $9800. What is the correct closing entry for the expense accounts?
A. Credit Expense accounts $40,800; debit Retained earnings $40,800.
B. Debit Expense accounts $40,800; credit Income Summary $40,800.
C. Debit Income Summary $40,800; credit Expense accounts $40,800.
D. Debit Income Summary $40,800; credit Retained earnings $40,800.
E. Debit Expense accounts $39,000; credit Retained earnings $39,000.
Answer: C
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