At the beginning of? 2019, Elliott, Inc. has the following account? 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?$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 2.52.5?%. The ending balance in the Allowance for Bad Debts is? ________.