At the Beginning of 2019,Elliott Company Has the Following Account $\$ 44,000$

Multiple Choice

At the beginning of 2019,Elliott Company has the following account balances: Accounts Receivable $\$ 44,000$ (debit balance)
Allowance for Bad Debts $\$ 5000$ (credit balance) Bad Debts Expense $0
During the year,credit sales amounted to $850,000.Cash collected on credit sales amounted to $790,000,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 2.5%.The ending balance in the Allowance for Bad Debts is ________.

A) $5000
B) $5250
C) $8750
D) $10,250