At the beginning of $2026,$ Elliott, Inc. has the following account balances:

Accounts Receivable $-$ $$40,000($debit balance$)$

Allowance for Bad Debts $-$ $$7,000($credit balance$)$

Bad Debts Expense $-$ $$0$

During the year, credit sales amounted to $$800,000.$ Cash collected on credit sales amounted to $$770,000,$ and $$16,000$ 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 $3\mathrm{.}5\%.$ The ending balance in the Allowance for Bad Debts is

A$.$ $$19,000$

B$.$ $$17,950$

C$.$ $$12,000$

D$.$ $$7,000$