A Sole Proprietorship Reported the Following Transactions for the Month $\$ 8,000$

question 123

Multiple Choice

A sole proprietorship reported the following transactions for the month of March.The transactions have been journalized and posted to the proper accounts. Mar. I The business received $\$ 8,000$ cash from the owner in excharge for capital.
Mar. 2 Paid the first month's rent of $\$ 600$ .
Mar. 3 Purchased equipment by paying $\$ 1,000$ cash and executing a note payable for $\$ 3,000$ .
Mar. 4 Purchased office supplies for $\$ 600$ cash.
Mar. 5 Billed a client for $\$ 11,000$ of desipr services completed.
Mar. 6 Received $\$ 9,000$ on account for the services previously recorded. What is the balance in Accounts Receivable?

• A) $9,000
• B) $2,000
• C) $3,000
• D) $11,000

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Definitions:

Entry Barriers

Factors that prevent or hinder the ability of new competitors to enter and operate successfully in an industry, including high startup costs, regulatory restrictions, and established brand loyalty.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over others because of perceived superiority or emotional attachment.