Doubtful Bank reported gross loans of $100 million on 31 December 2019 and $110 million...
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Finance
Doubtful Bank reported gross loans of $100 million on 31 December 2019 and $110 million on 31 December 2020. It also started with allowance for loan losses (ALL) of $1.48 million at the beginning of the year, charged off worthless loans of $0.94 million during the year, recovered $0.12 million on loans previously charged off and charged current income for a $1.02 million provision for loan losses. After the above processes and just before finalizing its accounts, the Bank felt that it should reduce the provision relating to Customer X by $0.02 million because Customer X has shown very promising results in the recent few days. Doubtful Bank will have an ALL at the end of the year of (in $) :
Select one:
11.56
1.58
10.0
1.56
2.58
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