Sources for Sales Ledger Control Account Adjustments

Steps:

• Identify sales returns: Goods returned by credit customers are recorded in the sales returns journal for totaling.
• Identify irrecoverable debts: Amounts written off as bad debts from credit customers are entered in the general journal.
• Match to control account: The sales ledger control account deducts these totals to reflect accurate receivables.
• Select option: Combine sales returns journal (for returns) and general journal (for write-offs).

Why D is correct:

• Sales returns journal provides the total returns by credit customers, and general journal records irrecoverable debt write-offs, as per standard bookkeeping source documents for receivables adjustments.

Why the others are wrong:

• A: Purchase returns journal tracks supplier returns, not customer returns; irrelevant to sales ledger.
• B: Sales returns and irrecoverable debt accounts are ledger postings, not original source documents.
• C: Purchase returns account handles outgoing returns, not incoming from customers; irrecoverable debt is not a source.

Final answer: D