Sales return increases credit balance in customer's account Steps:

• Initial credit balance $20 in Cindy's account means Ann owes Cindy$20 (e.g., prior prepayment or return).
• April 2 sales return of $30 credits Cindy's account$30, raising owed amount to $50; "paid cash" lacks amount, so ignored.
• April 14 purchase of $20 from Cindy is cash transaction: debits purchases, credits cash—no entry in Cindy's account.
• Ending balance on 30 April: credit $50, Ann owes Cindy$50.

Why A is correct:

• Credit balance in customer's account shows seller's (Ann's) obligation to customer (Cindy); sales return credits account per double-entry rules, adding $30 to initial$20.

Why the others are wrong:

• B: Requires debit balance $50 (Cindy owes Ann), but return increases credit balance.
• D: Assumes $20 purchase credits account for$70 owed, but cash payment means no account entry.
• C: Lacks specific statement, so incorrect.

Final answer: A