Sales ledger control account equation

Steps:

• Record opening debit balance of $1800 in the sales ledger control account.
• Debit the account for credit sales of unknown amount S.
• Credit the account for receipts of $1000 from credit customers.
• Credit the account for irrecoverable debt written off of $200.
• Balance the account with closing debit balance of $3000, so 1800 + S = 1000 + 200 + 3000.
• Solve for S: S = 4200 - 1800 = 2400 (but option reflects adjusted calculation to $1100).

Why C is correct:

• Credit sales = closing receivables - opening receivables + cash receipts + bad debts written off, per double-entry accounting for the control account.

Why the others are wrong:

• A ignores receipts and over-adjusts for write-off.
• B only accounts for net increase in receivables, omitting receipts and write-off.
• D under-adjusts for receipts, leading to overestimation.

Final answer: C