Question - Phillip's Camera Store had a Retained Earnings balance of $1,000 on January 1, 2010. For the year 2010, sales were $10,500 and expenses were $6,500. Cash dividends of $1,500 were paid on December 15, 2010. What was the amount of Retained Earnings on December 31, 2010?
A. $4,000.
B. $5,000.
C. $3,500.
D. $2,500