At the end oa an accounting period, lackawaxen co. has the following account balances listed on its Adjusted Trial Balance:

Sales revenue $100,000
Cost of goods sold $50,000
Administrative earnings: $25,000
Retained Earnings: 250,000


Assume there are no other revenue and expense accounts, and that revenues and expenses are closed with a single journal entry. Which of the following is the correct closing entry for Lackawaxen co?


A.
Administrative expense $25000
Cost of good sold 50000
Sales revenue 100,000
Retained earnings $175,000

B
Retained earnings 250,000
Sales revenue $250,000

C.
Retained earnings 25000
Cost of good sold 25000

D.
Sales revenue 100,000
Cost of goods sold 50000
Administrative expense 25000
Retained earnings 25000

In the future, put Dr. for debits and Cr. For credits, it will make it much easier to read.

The answer you want is D