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| Sam owns a business selling timber to trade customers only. During the year ended 30 June 20X6, a salesman from one of Sam’s biggest trade customers tripped over some unstacked timber and fell on the warehouse floor. Shortly before the year-end, Sam received a letter from the solicitor of the customer, stating that it was going to take Sam to court as a result of the accident. The letter stated that if Sam wanted to come to an arrangement out of court, the customer was willing to settle for $25,000；otherwise the customer would be claiming $50,000. Sam，s solicitor has advised him to settle out of court as there is a good chance of the case coming to court and Sam losing. How much should Sam include as a provision in the accounts for the year ended 30 June 20X6? A Nil B $25,000 C $50,000 D $75,000 |