Question $12(9$ points$)$

At the end of the accounting period, but before closing entries are made, Doug, the proprietor of Pepper's Cafe, has a debit balance of $$12,250$ in his drawing account and a credit balance of $$36,150$ in his capital account. Which of the following statements is correct?

Doug's net income was $$23,900.$

During the closing process, Doug will debit the drawing account for $$12,250$ and credit the capital account for $$12,250.$

During the closing process, Doug will debit the capital account for $$12,250$ and credit the drawing account for $$12,250.$

Doug's Retained Earnings account was $$23,900.$