Acme Co.'s aging schedule as of year-end is given below:
No. of Days Account is Outstanding Amount Probability of Collection
0 - 30 $9,000,000 99.0%
31 - 60 6,500,000 98.0
61 - 90 3,000,000 94.0
91- 120 1,200,000 80.0
121-150 600,000 70.0
over 150 days 400,000 40.0
Acme accounts for bad debts using the allowance method. At the beginning of the year, the allowance had a credit balance of $1,750,000. During the year, Acme wrote off $1,500,000 of ARs. What is Acme's bad debt expense for the year?