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Knowing nothing about accounting terminology, contra accounts, LLRs, etc., I can safely say I was very confused by the original paragraph. But am I your target audience? Will the people using the document be completely incompetent in accounting terms and principles? If so, then you need a glossary defining all of the non-common terms that are used in the paragraph:
loan loss reserve
contra account
contra asset-account
Loans Outstanding asset
Loan Loss Expense
Provision for Loan Losses
(I'm also a little confused why some of the items above are capitalized and others are not)
The key here, is the definitions for each of these "terms" must be plain language and easy to understand. You cannot include any accounting jargon that the audience might not understand.
My $0.02.
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