Credit entries reduce receivables in sales ledger control account Steps:

• Recognize sales ledger control account summarizes individual debtor accounts with debit balances for amounts owed.
• Identify debit side for increases to receivables, like sales or charges.
• Identify credit side for decreases to receivables, like returns or receipts.
• Match sales returns to credit side as they reduce owed amounts.

Why D is correct:

• Sales returns adjust invoices downward, decreasing the receivables asset per double-entry rules, so credited to the control account.

Why the others are wrong:

• A. Cash refunded to customers: debits the control account to clear overpayments (reducing credit balances in customer accounts).
• B. Sales to customers: increases receivables, so debited to the control account.
• C. Interest charged on overdue accounts: increases receivables, so debited to the control account.

Final answer: D