ABC Company uses the allowance method and estimates bad debts using the percent $-$ of $-$ sales method. The company's management estimates that $3\%$ of net credit sales will be uncollectible for the year $2026.$ Net credit sales for the year amounted to $$230,000.$ What is the journal entry to record the estimated Bad Debts Expense?

A$.$ Debit Bad Debts Expense for $$230,000$; Credit Allowance for Bad Debts for $$230,000$

B$.$ Debit Allowance for Bad Debts for $$230,000$; Credit Bad Debts Expense for $$230,000$

C$.$ Debit Bad Debts Expense for $$6,900$; Credit Allowance for Bad Debts for $$6,900$

D$.$ Debit Allowance for Bad Debts for $$6,900$; Credit Bad Debts Expense for $$6,900$