A Business Has the Following Transactions: the Business Is Started $\begin{array}{l}\text { Accounts receivable }\\\begin{array} { l | l } \hline 9,000 & \\& 1,500 \\\hline & 7,500\end{array}\end{array}$

question 117

Multiple Choice

A business has the following transactions: the business is started by receiving $20,000 from the owner.The business purchases $500 of supplies on account.The business purchases $2,000 of furniture on account.The business renders services to various clients totaling $9,000 on account.The business pays out $2,000 for Salary expense and $3,000 for Rent expense.Business pays $500 to supplier for the supplies purchased earlier.The business collects $1,500 from one of its clients for services rendered earlier in the month.At the end of the month,all journal entries are posted to the ledger.The Accounts receivable account will appear as follows:

• A)
• \(\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & 1,500 \\
• \hline & 7,500
• \end{array}
• \end{array}\)
• B)
• \[\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & 1,500 \\
• \hline 7,500 & \\
• \end{array}
• \end{array}\]
• C)
• \[\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & \\
• \hline 9,000 &
• \end{array}
• \end{array}\]
• D)
• \[\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & 1,500 \\
• \hline 7,500 & \\
• \hline
• \end{array}
• \end{array}\]

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Definitions:

Credit Sales

Sales made by a business for which payment will be made at a later date, as opposed to immediate cash sales.

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A statistical measure of the dispersion or spread of data points in a data set, indicating how much the individual data points differ from the mean.

Population Mean

The average of a set of characteristics or numbers in the entire population.