Based on the explanation below, the amount that will be entered in the debit column of the customer's ledger file is D. $1,200.
Effect of credit sales and sales returns on customer's ledger file
It should be noted the purchase by the customer is a credit sale to the seller.
In the book of the seller, the $1,200 is entered in the debit column of the customer's ledger file immediately after the customer purchases materials of $1200.
However, since the effect of sales return is to reduce the total amount of sales made to a customer, $200 will be entered in the credit column of the customer's ledger file after the return.
Therefore, $1,200 is entered in the debit column of the customer's ledger file.
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