Hero, let me explain something to you. You said,' Why should interest income be used to offset the loan loss reserve in the next accounting entry? I don't understand this, because this amount has been deducted in the first entry, and this part is expected to be recovered. There is no provision for bad debts in this 50'. Your understanding is wrong. Interest income is determined according to amortized cost and the actual interest rate. When the loan is impaired, the interest income can no longer be loaded into the "interest receivable" account. We increase the book value of the loan by reducing the loan loss reserve, and reduce the book value of the loan by reducing the balance of the loan impairment account when the interest is actually received. In fact, if you don't receive interest in the first step, the interest receivable should also be transferred to the loan impairment along with the loan principal, so the loan impairment does not refer to the principal, but is an integral part of the loan book value. In fact, there is only one purpose to do this, and that is to meet the needs of management. Of course, here you need to understand that the loan amortized cost = initial period+accrued interest-received interest and principal-impairment, so amortized cost is 500-206.438+0+29.34-50 = 272.73 at +00 on February 365438.