On December 31, 2019, Mills Manufacturing Ltd. had a $176,000 balance in its Accounts Receivable and a $10,000 balance in its Allowance for Doubtful Accounts. During 2020, the company made total sales of $955,000, of which $230,000 were cash sales. By the end of the year, Mills had received payments of $654,000 from its customers on account. The company also wrote off as uncollectible $13,300 of its receivables when it learned that these customers had declared bankruptcy. The company was subsequently able to recover $5,300 from one of these customers. (Note that this amount is not included in the cash collections noted above.) Management estimates that bad debts expense will be 3% of its credit sales.