Debits increase receivables in sales ledger control account

Steps:

• Sales ledger control account tracks total customer balances (trade receivables).
• Debit entries increase the overall debtors balance.
• Review options for items that add to customer obligations.
• Select the one that directly credits customer accounts, debiting the control.

Why A is correct:

• Interest on overdue accounts adds to the amount customers owe, increasing receivables per double-entry accounting (debit debtors, credit interest income).

Why the others are wrong:

• B: Irrecoverable debts reduce receivables, credited to the control account.
• C: Returns decrease sales and receivables, credited to the control account.
• D: Cash sales bypass the sales ledger, recorded directly in cash book without affecting receivables.

Final answer: A