6. At the beginning of 2017, Elixir, Inc. has the following account balances: Accounts Receivable $42,000 Allowance for Bad Debts $7,000 Bad Debts Expense $0 (debit balance) (credit balance) During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $770,000, and $18,000 has been written off. At the end of the year, the 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 is