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 3.5%

At the beginning of 2025, Statewide Delivery, Inc. has the following account balances: Accounts Receivable - $43,000 (debit balance) Allowance for Bad Debts - $8,000 (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 S16,000 has been written off. rate, based on past history, of 3.5% The ending balance of Accounts Receivable is O A. $16,000 B. $43,000 OC. $56,105 D. $67,000