In substance, the bank has merely charged down its $10 million loan by $1 million, leaving a $9 million recorded loan balance. The remaining balance should be accounted for and reported as a nonaccrual loan. Partial charge-off of a loan does not provide a sufficient basis by itself for restoring the loan to accrual status. Furthermore, the bank should record loan payments as principal reductions as long as any doubt remains about the ultimate collectibility of the recorded loan balance. When that doubt no longer
exists, interest payments may be recorded as interest income on the cash basis.We recommend buying your favorite toothbrush at super low prices with free shipping, and you can also pick up your order at the store on the same day.