Nuance Company uses the percentage of receivables method to estimate uncollectible accounts. The company assumes that 5 percent of accounts receivable will never be collected and had accounts receivable of $130,000 at the end of the year. If you assume that the allowance for doubtful accounts had an unadjusted credit balance at the end of the year of $1,000, the entry to record Nuance's bad debt expense for the year includes: A credit to Allowance for Doubtful Accounts of $5,500. A debit to Allowance for Doubtful Accounts of $5,500. A credit to Allowance for Doubtful Accounts of $6,500. A credit to Accounts Receivable of $6,500