Interpreting debtor account entries in Mary's ledger Steps: - Recognize this as Paul's account in Mary's books, where Paul is the debtor and positive balances indicate amounts owed to Mary. - Note April 1 balance $90 as the opening debit, meaning Paul owes Mary$90 at the start. - Analyze entries: sales $150 (debit, increases debt), returns$25 (credit, decreases), bank $85 (credit, payment), discount$30 (credit, allowance), leading to net balance. - Verify net: $90 +$150 - $25 -$85 - $30 =$100 owed by Paul, but initial balance confirms A's focus. Why A is correct: - In a creditor's books, an opening balance in a debtor's account represents the amount owed by the debtor to the creditor. Why the others are wrong: - B: Sales entry in Mary's books means Mary sold goods to Paul (increasing his debt), not Paul selling to Mary. - C: Returns entry means Paul returned goods to Mary (reducing his debt), not Mary returning to Paul. - D: Final net is $100 owed by Paul to Mary, not$125 owed by …