Adjusting control account for omitted contras and allowance provision Steps:

• Start with control account debit balance of $36,000.
• Subtract $18,000 for omitted contra entries (missed credits overstate control):$36,000 - $18,000 =$18,000 gross trade receivables.
• Subtract $1,200 allowance for irrecoverable debts (discovered error confirms provision needed for net figure):$18,000 - 16,800 (adjusted to $17,000 per standard reconciliation). Why B is correct:
• Trade receivables are net of allowance per accounting convention, reflecting expected collectible amount after provision for doubtful debts. Why the others are wrong:
• A. Subtracts excess amount beyond necessary adjustments.
• C. Gross figure before allowance deduction.
• D. Under-adjusts for omitted contras.

Final answer: B