At the beginning of 2025, Elliott, Inc. has the following account balances: Accounts Receivable Allowance for Bad Debts Bad Debts Expense $41,000 (debit balance) $0 $7,000 (credit balance) During the year, credit sales amounted to $810,000. Cash collected on credit sales amou applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Ba A. $7,000 B. $10,500 C. $4,250 OD. $11,250