The debtor's budget shows the planned amount owing from credit sales. The closing balance of the debtors account is calculated as follows:

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The debtor's budget shows the planned amount owing from credit sales. The closing balance of the debtors account is calculated by subtracting the cash receipts from the total of opening balance and sales. This is because the cash receipts represent the actual amount collected from the debtors, and so need to be deducted from the planned amount owing from credit sales. Therefore, the correct formula is (opening balance plus sales) less cash receipts, which corresponds to choice C.

The Debtor's Budget Shows the Planned Amount Owing from Credit