The following balances as at year$-$end $30$ June $2019$ were taken from the financial records from ABC Traders:

Debit

R

Credit

R

Debtors

$11600$

Allowance for credit losses

$1300$

The following transactions must still be taken into account:

Mr$.$ Cannotpay, a debtor of the entity was declared insolvent. The total amount of R$500$ owed by the debtor must be written off.

Allowance for Credit losses must be adjusted to $5\%$ of the outstanding debtors control account.

Choose the correct entry for the recording of the allowance for credit loss adjustment after the debtors account has been written off.

A$.$ Credit losses account debited R$550$ and Allowance for credit losses account credited R$555$

B$.$ Debtors control account debited R$245$ and Credit losses account credited R$245$

C$.$ Allowance for Credit losses account debited R$245$ and Credit losses account credited R$245$

D$.$ None of the above