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Mahmoud Manufacturing buys rugs to resell to customers. Mahmoud's December 31st T-Account balances, before recording...

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Accounting

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Mahmoud Manufacturing buys rugs to resell to customers. Mahmoud's December 31st T-Account balances, before recording Tax Expense and the closing journal entry, are halaw. Using the above information, Mahmoud first records his income tax expense, and then makes his closing entry. How much will Mahmoud debit or credit Retained Earnings for in his closing journal entry? Assume an income tax rate of 7% of net income before taxes. Use a negative number to represent a debit to Retained Earnings. Round your final answer to one decimal place

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