After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $32,000. The entry to close the income summary account will be:
A. Credit Retained earnings $32,000; debit Dividends $32,000.
B. Debit Income Summary $32,000; credit Retained earnings $32,000.
C. Debit Income Summary $32,000; credit Dividends $32,000.
D. Debit Dividends $32,000; credit Income Summary $32,000.
E. Debit Retained earnings $32,000; credit Income Summary $32,000.
Answer: E
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