NOTE 5: ALLOWANCE FOR LOAN LOSSES

question 2

Essay

NOTE 5: ALLOWANCE FOR LOAN LOSSES

The allowance for loan loss is maintained at a level to absorb probable losses inherent in the loan portfolio. This allowance is increased by provisions charged to operating expense and by recoveries on loans previously charged off, and reduced by charge-offs on loans.

The following is a summary of the changes in the allowances for loan losses for three years:

Winchester also reported (in thousands) in its comparative balance sheet that it held Loans receivable, net, of $6,869,11 and $6,819,209 at December 31, 2018, and December 31, 2017, respectively.
-For each posted entry in the Allowance account during 2018, indicate the remaining entry(ies) in other accounts.

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Definitions:

Facilitating Communication

The process of making communication easier within an organization through various tools and strategies to ensure clear, effective exchange of information.

Controlling Profit

The process of managing or influencing the financial outcomes of a business to ensure profitability and achieve financial goals.

Evaluating Performance

The process of analyzing, assessing, and documenting the efficiency and effectiveness of operations, personnel, or investments.

Providing Incentives

The process of offering rewards or benefits to motivate employees or customers to achieve certain goals or behaviors.