The F. Mercury, Capital 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 withdrawals 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. Credit Expense accounts $39,800; debit F. Mercury, Capital $39,800.
C. Debit Expense accounts $39,800; credit Income Summary $39,800.
D. Debit Expense accounts $37,000; credit F. Mercury, Capital $37,000.
E. Debit Income Summary $39,800; credit F. Mercury Capital $39,800.
Answer: A
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