Nolan Company Had Total Credit Sales for the Past Year $\begin{array}{lcc}\text { Bad Debts Expense } & 14,380 & \\\quad \text { Accounts Receivable } && 14,380 \\\end{array}$

Nolan Company had total credit sales for the past year of $800,000.As of year-end,but before estimating bad debts,the company had a $70,000 debit balance in accounts receivable and a $600 debit balance in the Allowance for Uncollectible Accounts.Upon examination of the accounts receivable,it was found that 55% of the balance was 1-30 days old,30% was 31-60 days old,9% were 61-90 days old,and 6% were over 90 days old.Nolan Company estimates the following bad debts percentages: 1-30 days 10%
31-60 days 25%
61-90 days 40%
Over 90 days 80%
Which of the following is the journal entry necessary to estimate bad debts using the aging method?

A) $\begin{array}{lcc}\text { Bad Debts Expense } & 14,380 & \\\quad \text { Accounts Receivable } && 14,380 \\\end{array}$

B) $\begin{array}{lccc}\text { Bad Debts Expense } & 14,380 & \\\quad \text { Allowance for Uncollectible Accounts } && 14,380 \\\end{array}$

C) $\begin{array}{lccc}\text { Bad Debts Expense } & 14,980 & \\\quad \text { Allowance for Uncollectible Accounts } & & 14,980 \\\end{array}$

D) $\begin{array}{lccc}\text { Bad Debts Expense } & 15,580 & \\\quad \text { Allowance for Uncollectible Accounts } & & 15,580 \\\end{array}$

E) $\begin{array}{lccc}\text { Bad Debts Expense } & 16,180 & \\\quad \text { Allowance for Uncollectible Accounts } & & 16,180\end{array}$