Question: A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $120,000. During the year, Sales Revenue amounted to $80,000,

A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $120,000. During the year, Sales Revenue amounted to $80,000, Cost of Goods Sold was $45,000, and all other expenses totaled $10,000. The company declared and paid $27,000 as dividends. The ending balance of Retained Earnings would be ________.

a. $118,000

b. $145,000

c. $120,000

d. $172,000

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