Quicken then displays the Update Account Balances dialog box.
Fixing the principal balance error
To adjust, or correct, the loan balance, enter the correct ending balance in the Update Balance To box and the ending balance date in the Adjustment Date box. You should be able to get this information from the end-of-year or end-of-month loan statement that alerted you to the loan balance error.
Fixing the interest expense error
To fix the interest portion of the loan record-keeping error, enter the interest category and subcategory you used in the Category For Adjustment boxes. For example, if you used Loan as the category and Mortgage Interest as the subcategory, enter this category and subcategory in the two boxes.
While it might seem curious to use the loan interest categories for categorizing an adjustment to the loan balance, remember that loan payments are split between principal and interest.
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