4) At the beginning of 2019, Elliott, Inc. has the following account balances: Accounts Receivable $41,000 Allowance for Bad Debts $500 Bad Debts Expense $0 (debit balance) (credit balance) During the year, credit sales amounted to $820,000. Cash collected on credit sales amounted to $780,000, and $15,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-receivables method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts is A) $1650 B) $16650 C) $16150 D) $1025