Suspense Account Error Corrections Steps:

• Note opening debit balance of $100 in suspense, indicating initial trial balance debits were$100 less than credits to force agreement.
• Observe debit entry for discount allowed $150, which corrects an overcast (excess debit total) in that account by transferring$150 to credit it.
• Examine credit entries totaling $200 (sales$150 + $50), representing adjustments like undercast sales, but irrelevant to the statements.
• Confirm statements 2 and 3 align with these: initial $100 shortfall and$150 overcast correction.

Why C is correct:

• Combines statement 2 (opening $100 debit proves debits$100 less than credits per trial balance rules) and 3 (debit suspense $150 directly fixes discount allowed overcast by reducing its balance).

Why the others are wrong:

• A: Includes 1, but $50 mismatch misstates the initial$100 discrepancy shown by opening balance.
• B: Omits valid 2 and 3 tied to suspense entries.
• D: Excludes 2, but $100 opening debit confirms the trial balance shortfall.

Final answer: C