At the beginning of 2015, Elixir Inc. has the following ledger balances: Accounts Receivable $40,000 (debit balance) Allowance for Bad Debts $5,000 (credit balance) Bad Debts Expense $0 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 aging method. The amount estimated as uncollectible was $25,000. The ending balance in Bad Debts Expense would be ________.

$38,000

$25,000

$13,000

$7,000