Which of the following merchandising accounts is NOT closed out to Retained Earnings at the end of the period?

1. Closing entries clear temporary income-statement accounts to Retained Earnings. 2. The Sales Discounts, Cost of Sales and Delivery Expense accounts all appear on the statement of profit or loss and are closed. 3. Merchandise Inventory is a balance sheet asset with a permanent balance, so it is not closed out. 4. Therefore Merchandise Inventory is the account that is not closed. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §3.6 "Closing Entries for Merchandising Accounts", p.108_