Adjusting trade receivables for omitted dishonoured cheque Steps:

• Start with total ledger balances representing trade receivables: $30,000.
• Dishonoured cheque of $1,000 omitted from control account overstates receivables, as payment reversal or write-off was not recorded; subtract$1,000.
• Sales journal understated by $1,200 affects sales recording but ledger balances already reflect adjusted individual accounts; no further change.
• Corrected trade receivables: $30,000 -$1,000 = $29,000.

Why B is correct:

• Trade receivables in the statement of financial position exclude uncollectible amounts like dishonoured cheques per accrual accounting principles.

Why the others are wrong:

• A subtracts excess amount, possibly misapplying both errors.
• C duplicates B but listed separately.
• D adds the dishonour amount, ignoring its uncollectible nature.

Final answer: B