D is corrent because a debit to sales returns with a credit to accounts receivable is a normal entry for returns and is one which would not appear questionable. Therefore, the auditor would expect an experienced bookkeeper to charge sales returns in a defalcation involving accounts receivable.
A is incorrect because the write-off of the receivable would require a debit to miscellaneous income, an extremely unusual and noticeable entry.
B is incorrect because petty cash will be limited to small entries and because the entry would appear unusual.
C is incorrect because a debit to a miscellaneous expense and a credit to accounts receivable would be unusual and noticeable.
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