Selia Sewage Systems Has Sales of $900,000,of Which 25% Are

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 it is determined that the company will not collect from Colltor and from Mortana for the amounts of $330 and $680,respectively,what journal entry would Selia prepare?

A) $\begin{array}{lcc}\text { Allowance for Uncollectible Accounts } & 1,010 & \\\text { Accounts Receivable, Colltor }&& 330 \\\text { Accounts Receivable, Mortana }&&680\\\end{array}$

B) $\begin{array}{lccc}\text { Bad Debts Expense } & 1,010 \\\text { Accounts Receivable, Colltor }&& 330 \\\text { Accounts Receivable, Mortana }&&680\\\end{array}$

C) $\begin{array}{lccc}\text { Bad Debts Expense } & 1,010 \\\quad \text { Allowance for Uncollectible Accounts } & & 1,010 \\\end{array}$

D) $\begin{array}{lccc}\text { Accounts Receivable, Colltor } & 330 & \\\text { Accounts Receivable, Mortana } & 680 & \\\quad \text { Allowance for Uncollectible Accounts } & & 1,010 \\\end{array}$

E) $\begin{array}{lccc}\text { Accounts Receivable, Colltor } & 330 & \\\text { Accounts Receivable, Mortana } & 680 & \\\quad \text { Bad Debts Expense }& & 1,010\end{array}$