Company operates in an industry that has a high rate of bad debts. On December 31, 2020, before any year-end adjustments, the accounts receivable balance was P8,000,000 and its allowance for doubtful accounts balance was P400,000. The year-end balance reported for the allowance for doubtful accounts is based on the following schedule:

Time Outstanding Accounts Receivable Percent Collectible

Under 30 days 5,000,000 95%

31 - 180 days 1,500,000 90%

181 - 360 days 1,000,000 70%

More than one year 500,000 0%

The accounts which have been outstanding for more than one year and 100% uncollectible would be written off immediately. What should be the doubtful accounts expense for the year ended December 31, 2020?

A. 700,000 B. 800,000 C. 500,000 D. 300,000