Yes

Receipts should go to Trade Debtors

That's what I thought, but Sage doesn't let me select the Trade debtors ledger in the bank feed.

I have reviewed the debtor's ledger in the chart of accounts and have tried to tick the "Other Reciepts" box under the 'Visibility' section, but a red banner appears stating "You can't expose this control account". Im not sure about what to do from here.

I would create a "Summary Trade Debtors" account 1201 and use that for both transactions

Or create a Summary Sales Customer and use batch invoice and customer receipt

But this isn't the same account that I have debited in my sales journal. Does this matter?

You could edit your sales journal and change 1200 to 1201

I think on reflection, that using a dummy customer and booking a sales receipt requires less book keeping knowledge and is safer to teach others

Can you clarify here what you mean by 'both transactions'. I am struggling with processing customer reciepts 

By both transactions I mean the Sales Journal and the bank receipt.

I think the most robust method is to process the Sales Journal as a batch invoice on a designated customer called credit sales or similar, this is easy for Sage to handle the VAT.

Then, when payment is received via the bank feed, you can create a transaction as a "Customer Receipt" selecting Credit sales as the customer

This sounds like a good fix. Thank you.

However, I think editing the sales journal by replacing trade debtors with a new ledger called 'Trade debtors Clearing account' ould be a quicker fix for my situation. This is what you mentioned earlier, right? 

Yes that would fix your current month. I think the customer solution will be better moving forward