The Retained earnings account has a credit balance of $52,000 before closing entries are made. Total revenues for the period are $70,200, total expenses are $47,300, and dividends are $15,000. What is the correct closing entry for the expense accounts?
A. Credit Expense accounts $47,300; debit Retained earnings $47,300.
B. Debit Income Summary $47,300; credit Expense accounts $47,300.
C. Debit Income Summary $47,300; credit Retained earnings $47,300.
D. Debit Expense accounts $47,300; credit Income Summary $47,300.
E. Debit Expense accounts $52,000; credit Retained earnings $52,000.
Answer: B
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