Final answer:
The student is dealing with basic accounting concepts within a business transaction, specifically sales on account, revenue, accounts receivable, and cost of goods sold.
Step-by-step explanation:
The student's question refers to a business transaction where clothing was sold on account to Briarfield School for Girls for $3,500, with the cost of goods sold being $2,000. This question is related to accounting and business studies and involves the concepts of sales revenue, accounts receivable, and cost of goods sold (COGS). When clothing is sold on account, it means that the merchandise has been sold but the payment will be received at a later date. This creates an accounts receivable entry for the business. Similarly, the cost of goods sold represents the direct costs attributable to the production of the goods sold by a company. In this case, the $2,000 is the amount the business paid to produce or purchase the clothing which was then resold to Briarfield School for Girls.