Tou are the CPA for Mr. Passmore's sole proprietorship. Mr. Passmore tells you on day 1 that he obtained a commercial loan for $100,000, and he deposited the money into the bank account of the sole proprietorship. Llso, on day 1 he tells you that he wants you to write him a check for $100,000.00 on day 2 because on day 2 he is going to buy $100,000.00 worth of equipment. So, on day 2 you prepare the check and sign it (you ave signature authority on the bank account which is a common practice in sole proprietorships - it's convenient). On day 3 , Mr. Passmore returns with the equipment and the receipt for $100,000.00 on day 3 . What, f anything, do you do on day 2 to the accounting records for the sole proprietorship? Multiple Choice On the accounting records of the sole proprietorship, debit Equipment for $100,000 and credit Owner's Draws for $100,000 because the sole proprietor and the sole proprietorship are two different accounting entities even though, under the law, they are legally regarded as one legal entity. On the accounting records of the sole proprietorship, debit Owner's Draws for $100,000 and credit Cash for $100,000 because the sole proprietor and the sole proprietorship are one legal entity. On the accounting records of the sole proprietorship, debit Owner's Draws for $100,000 and credit Cash for $100,000 because the sole proprietor and the sole proprietorship are two different accounting entities even though, under the law, they are legally regarded as one legal entity. On the accounting records of the sole proprietorship, debit Equipment for $100,000 and credit Notes Payable for $100,000 because the sole proprietor and the sole proprietorship are two different accounting entities even though, under the law, they are legally regarded as one legal entity. None of the other choices are correct