A bank determines that a $100,000 home loan to a customer is delinquent and at risk of foreclosure. The bank will:

Multiple Choice Reduce Loans Secured by Real Estate by $100,000 and reduce Retained Earnings by $100,000 Reduce Loans Secured by Real Estate by $100,000 and reduce Reserve for Loan Losses by $100,000 Increase Reserve for Loan Losses by $100,000 and record a $100,000 expense to Provision for Loan Losses Decrease Reserve for Loan Losses by $100,000 and record a $100,000 expense to Provision for Loan Losses Wait until the loan forecloses then reduce Loans Secured by Real Estate and Retained Earnings by $100,000