Assume that Vaughn Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2020, one of Vaughn's creditors, the National American Bank, determined that Vaughn would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. The loss is estimated to be $240,000. What entry should National American Bank make to record this loss? (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31, 2020 Debit Credit