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    Purpose of closing entries

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    The purpose of closing entries is to transfer:

    A. Accounts receivable to retained earning when an account is fully paid.

    B. Balance in temporary accounts to a permanent account.

    C. Inventory to cost of goods sold when merchandise is sold.

    D. Assets and liabilities when operations are discontinued.

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    Solution Preview

    The purpose of closing entries is to transfer:

    As per investopedia "The closing entry is used to transfer data in the ...

    Solution Summary

    The response provides purpose of closing entries.