Misclassification of credit balance in sales ledger control account Steps: - Compare sales ledger control account balance ($15,800) to total individual customer balances (implied$16,000, difference 200 credit as debit adds 200 discrepancy with control overstated. Why A is correct: - Per double-entry principle, a customer's credit balance requires crediting the control account (reducing debit balance); posting as debit violates this, overstating receivables by $200. Why the others are wrong: - B: Omitting irrecoverable debt entry would overstate control by not crediting it, but phrasing "omitted as debit" doesn't fit standard bad debt posting (Dr expense, Cr control). - C: Purchases returns belong in purchase ledger (creditors), not sales ledger; wrong side entry wouldn't affect receivables control. - D: Double entry of sales returns in personal accounts would understate individual balances, but control postings would match unless …