What provision for doubtful debts should the bank make against revenue during the year?

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In early Jan, Admin Bank decided to set its allowance for loan losses at 1.5% of total loans by the end of Dec of the same year. Currently, its provision for doubtful debts is $40m, total loans were $3b and loans were expected to grow 12% during the year. Admin Bank estimated that it would write off $20m during the year but also would recover $6m on previously written off loans. What provision for doubtful debts should the bank make against revenue during the year?

 

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