Selia Sewage Systems Has Sales of $900,000,of Which 25% Are $\begin{array}{lcc}\text { Allowance for Uncollectible Accounts } & 10,125 & \\\quad \text { Accounts Receivable } & &10,125 \\\end{array}$

Selia Sewage Systems has sales of $900,000,of which 25% are cash sales and the remainder is on credit.As of year-end,but before the bad debts adjustment,the Allowance for Uncollectible Accounts has a credit balance of $300,and Accounts Receivable has a debit balance of $60,000.If bad debts are estimated to be 1.5% of credit sales,what journal entry will Selia Sewage Systems need to prepare in order to estimate bad debts?

A) $\begin{array}{lcc}\text { Allowance for Uncollectible Accounts } & 10,125 & \\\quad \text { Accounts Receivable } & &10,125 \\\end{array}$

B) $\begin{array}{lccc}\text { Bad Debts Expense } & 9,525 & \\\quad \text { Allowance for Uncollectible Accounts } & & 9,525 \\\end{array}$

C) $\begin{array}{lccc}\text { Bad Debts Expense } & 10,425 & \\\quad \text { Allowance for Uncollectible Accounts } & & 10,425 \\\end{array}$

D) $\begin{array}{lccc}\text { Bad Debts Expense } & 10,125 & \\\quad \text { Allowance for Uncollectible Accounts } & & 10,125 \\\end{array}$

E) $\begin{array}{lccc}\text { Bad Debts Expense } & 13,500 & \\\quad \text { Accounts Receivable } & & 13,500\end{array}$