When Chengfa Corp. ships its products to customers, it sends an invoice with payment due in 30 days, recognizing revenue and an account receivable. If a receivable is not collected after 180 days, Chengfa considers it to be uncollectible and writes off the receivable at that time. Chengfa closes its books and issues financial reports on a quarterly basis; the company's fiscal year ends on December 31. (All monetary amounts below are in millions of Chinese RMB.) On October 1, 2018, the credit balance in Chengfa's Allowance for Doubtful Accounts was 5,600, and the debit balance in Accounts Receivable was 88,000. During the fourth quarter, Chengfa wrote off customer receivables equal to 5,000. At the end of the fourth quarter, the debit balance in Accounts Receivables was 100,000. The table below provides the aging of those end-of-year receivables and Chengfa's projections of collectability. Days Outstanding Receivable Balance Probability of Not Collecting 0-30 80,000 0.02 31-90 12,000 0.10 91-180 8,000 0.40 What was bad debt expense for the fourth quarter of 2018? (Express your answer in millions of RMB. The amounts above are expressed in millions.)

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To calculate the bad debt expense for the fourth quarter of 2018 we ne... View the full answer