The following transactions for the month of March have been

The following transactions for the month of March have been journalized and posted to the proper accounts.

Mar. 1 The business received $7,000 cash and issued common stock to stockholders.
Mar. 2 Paid the first month’s rent of $500.
Mar

3 Purchased equipment by paying $2,000 cash and executing a note payable for $6,000.
Mar. 4 Purchased office supplies for $700 cash.
Mar. 5 Billed a client for $12,000 of design 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) $3,000
C) $6,000
D) $12,000

ANSWER

B .Accounts Receivable is increased (debited) by the March 5 amount of $12,000 and decreased (credited) by the March 6 amount of $9,000.