Credits in Sales Ledger Control Account

Steps:

• Identify the sales ledger control account as the total debtors' ledger, where debits record sales and credits record reductions like payments.
• List typical credit entries: cash received from customers, discounts allowed, bad debts written off, and sales returns.
• Match choices to these: assume 2 is discounts allowed and 3 is cash received, as they reduce receivables.
• Eliminate mismatches: 1 likely a debit (e.g., sales), 4 a non-credit (e.g., contra).

Why D is correct:

• Credits reduce the balance of receivables, so discounts allowed (2) and cash received (3) appear on the credit side per double-entry principles.

Why the others are wrong:

• A includes 1 (likely a debit entry like sales, which goes on debit side).
• B only 1, ignoring valid credits 2 and 3.
• C includes 4 (likely not a credit, e.g., a journal adjustment on debit side).

Not enough information on exact items 1–4 for full certainty.

Final answer: D