MULTIPLE CHOICEChoose the one alternative that best completes the statement or answers the question. 16) At the beginning of 2017, Elixir, Inc. has the following account balances: Accounts Receivable $40,000 (debit balance) (credit balance) Allowance for Bad Debts $5,000 Bad Debts Expense $0 During the year, credit sales amounted to $850,000. Cash collected on credit sales amounted to $760,000, and $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 2.5% The ending balance in the Allowance for Bad Debts is A) $6,000 D) $5,000 C) $8,250 B) $3,250