Bookkeeping for Note Question

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This is for either those accountants out there, or else experienced investors that have solved this.  From Note investing accounting.  A note I assume would be considered a Loan Receivable.  I know the direct cost of purchase would be included in it.  However, is the value considered what you paid for it, or the unpaid principal balance?  

I assume the bookkeeping for a non-performing loan is different.  But maybe not?

@Andy Mirza . Thanks for the response.  That was my first thought.  When you say expenses, I assume you mean the closing and due diligence expenses.  Or do you mean even the ongoing like servicing etc. I assumed some of the ongoing expenses are more a cost of good sold, like the servicing fees.