During the first year of a company's operations, creates were 50.000 and collections on credit sales were 534,000. The allowance for bad debit account was ero as it was the first year of operations. One account of $500 was written off, Management uses the percent of sales method to account for bad debitis expense and estimates of credit sales to be uncollectible. The ending balance of Allowance for Bad Debts account after adjustment is $2,505 $1,500 $1,000 5465