Adjusting sales ledger control account for omitted entries

Steps:

• Classify omitted items: contra ($340), discount allowed ($538), and irrecoverable debt ($48) are credit entries reducing the debit balance; dishonoured cheque ($562) is a debit entry increasing it.
• Sum credit entries: $340 +$538 + $48 =$926 reduction.
• Apply debit entry: +$562 increase.
• Net adjustment: $26,400 -$926 + $562 =$25,628.

Why B is correct:

• B applies double-entry principles by crediting reductions (contra, discount, bad debt) and debiting the reinstatement (dishonoured cheque), yielding the reconciled balance.

Why the others are wrong:

• A over-reduces by treating dishonoured cheque as a credit.
• C under-adjusts by adding credit entries instead of subtracting.
• D ignores discount allowed and dishonoured cheque effects.

Final answer: B