The December 31 trial balance of Duncan Company included the following accounts: $ 10,000 800 (cr.) 130,000 5,000 Accounts Receivable Allowance for Bad Debts. Sales Revenue Sales Returns and Allowances Duncan Company uses the percentage of credit sales method to record bad debts. If it is estimated that 1 percent of the net sales is uncollectible, the entry to record the estimate of bad debts would include a debit to Bad Debt Expense for: $