However, if it's the contractor that needs to record the loan and its installment, I'd suggest asking for guidance from your accountant. They'll know what account should you use to properly record the loan to ensure the accuracy of your books.
Hi Joesem and thank you so much for getting back to me so promptly. I did create a long term liability account (with an opening balance negative 2000) as this will be repaid in 4 installments through Feb 2021. The loan was a part of the regular biweekly contractor pay. I assigned the wages portion to the Contractor account and what account to use for the $2000?