My question: suppose the actual bad debt for a buusiness for the three previous years is 5%. If the net credit sales is 2,000,000.00 then what is the estimate bad debt expense for the next year? I tried but i don't think this is right.

Bad Debt Expense...100,000
Allownace for doubtful accounts..100,000
To record bad debt expenses.

Looks right to me...

Only question I have is, is there anything in the allowance account now? Also the question doesn't seem to ask for a J/E just the amount.

This is exactly the way the question were asked.

Recording estimated uncollectible or doubtful debts can be on two methods:
1. Income statement approach - Under this you just record the estimated bad debts based on sales. Your entry is correct. Balance in the allowance account will change due to this entry and any actual bade debts in the next year will be recorded in the allowance account with a credit to accounts receivable.
2. Balance sheet approach - This methods reports the estimated doubtful debts based on the year end accounts receivable. If there is any balance in the allowance account, the charge to the income statement will be the difference between the required estimate and the balance in the allowance account.