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An annual report for Bombardier Inc. contained the following information at the end of its fiscal year (in millions of dollars): Year 2 Year 1

An annual report for Bombardier Inc. contained the following information at the end of its fiscal year (in millions of dollars): Year 2 Year 1 Trade receivables $ 1,559 $ 1,450

Allowance for uncollectible accounts (34 ) (42 ) $ 1,525 $ 1,408

A footnote to the financial statements disclosed that uncollectible accounts of $5 million and $17 million were written off as bad debts during years 1 and 2, respectively. Assume that the tax rate for Bombardier was 30 percent.

Required: 1. Determine the bad debt expense for year 2 based on the preceding facts. (Enter your answer in millions of dollars.)

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