The information below was taken from the footnotes of JP-Morgan Chase€™s 2014 annual report. The December 31, 2014, balance in the allowance account was $14,185 (dollars in millions).

REQUIRED:
Compute the actual write-offs recognized by JP-Morgan Chase in 2012, 2013, and 2014. Comment on JP-Morgan Chase€™s annual estimates. Discuss the amount of the 2013 provision, as compared to the 2012 and 2014 estimate. Discuss the reasons underlying the 2013 amounts.

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2013 2014 2012 $27,609 Allowance at Jan. 1 Provision for losses $21,936 $16,264 3,390 130 3,224 Recoveries 1,665 811 1,843