At the beginning of 2025 Elliott, Inc has the following account balances Accounts Receivable - 543,000 (debit balance) Allowance for Bad Debts - $7.000 (credit balance) Bad Debts Expense - 50 During the year credit salos amounted to $850,000 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 25% The ending balance in the Allowance for Bad Debts is O A S12 250 OB $7000 OC. $10,250 OD. $5,250