CASE 7-2 (L07.5) MELVILLE CREDIT UNION The Melville Credit Union has operated in small-town, rural Nova Scotia for the last 27 years. In the summer of 20X4, after decades of operation as a prosperous paper mill, the Lancaster Mersey Mill was abruptly shut down. Lancaster had been a major employer of many clients of Melville. In fact, of the 1,000 residents of the town in which Melville operates, over 320 were employed by Lancaster. The following information relates to loans receivable of Melville as of 30 June 20X4 : 30 June 20 xx4 30 June 20 xx3 Loans receivable $4,306,190 $3,164,000 Less: allowance for doubtful accounts 427,312 412,375 $3,878,878 $2,751,625 Aging: 4s of 30 June 20 xx3 : Current Over E