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Mills Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts has a...

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Accounting

Mills Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts has a credit balance
of $12,000 at the beginning of year 1 and a $20,400 credit balance at the end of year 1(after adjusting entries). If the direct
write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the
income statement for year 1 would have included bad debt expense of $11,800 and revenue of $3,400 from the collection of
previously written off bad debts.
Determine bad debt expense for year 1 according to the allowance method.

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