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and recovers $225,000 on loans previously charged off. What will be the balance in the allowance for loan losses at year-end?

and recovers $225,000 on loans previously charged off. What will be the balance in the allowance for loan losses at year-end?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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13. Suppose a bank has an allowance for loan losses of $2.12 million at the beginning of the year, charges current income for a $750,000 provision for loan losses, charges off worthless loans of $350,000, and recovers $225,000 on loans previously charged off. What will be the balance in the allowance for loan losses at year-end? A. $2,120,000 B. $2,425,000 C. $2,745,000 D. $ 1,945,000
Transcribed Image Text:13. Suppose a bank has an allowance for loan losses of $2.12 million at the beginning of the year, charges current income for a $750,000 provision for loan losses, charges off worthless loans of $350,000, and recovers $225,000 on loans previously charged off. What will be the balance in the allowance for loan losses at year-end? A. $2,120,000 B. $2,425,000 C. $2,745,000 D. $ 1,945,000
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