A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was...

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A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $120,000. D

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Answer 1

Answer #1

B. $125,000

Calculation of closing balance of Retained Earnings

Beginning balance	$1,20,000
Add: Net Income	$30,000
Less: Dividends	$25,000
Closing Balance	$1,25,000

Working
Sales Revenue	$80,000
Cost Of Goods Sold	$40,000
Other Expenses	$10,000
Net Income	$30,000

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Answer 2

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