31) At the beginning of 2015, Elixir Inc. has the following ledger balances: Bad Debts Expense Accounts Receivable 40,000 Allowance for Bad Debts 5,000 During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000 and $18,000 has been written off. At the end of the year, company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts would be Prepare all necessary journal entries