22 BULLETIN 590, XJ. S. DEPARTMENT OP AGRICULTURE. 



Undercharges. — All items of undercharges in freight, icing, demur- 

 rage, diversion, and switching are credited to this account pending 

 their adjustment. When organizations merely pack, warehouse, and 

 load the fruit, but do not sell it, their selling agents usually attend to 

 these matters. 



Against shipments originating from outlying points there is some- 

 times a differential in freight of from 2 to 15 cents per hundred when 

 destined to certain markets. The amount of this freight arbitrary 

 is held in the undercharge account as a protection against possible 

 claims from buyers. After a sufficient lapse of time a portion at 

 least of the sum accumulated can be written back into the respective 

 pools. 



Claims. — Ail amounts received in payment of claims against the 

 railroad companies are credited to the "Claims account." If the 

 amount is sufficiently large, a disbursement is made to the growers 

 participating in the pool of the fruit on which the claim originated. 

 Otherwise the balance is transferred to the profit and loss account at 

 the end of the year. 



Revenue accounts. — An account is opened under the caption " Ware- 

 house revenue" to accumulate the deductions made from the account 

 sales for warehousing the fruit. The packing-house revenue account 

 is credited with the amounts charged to the growers' accounts to cover 

 the cost of packing the fruit. 



In organizations where separate charges are made for labeling and 

 inspection, the amounts of these deductions from the account sales 

 are accumulated in the labeling revenue account and inspection rev- 

 enue account. 



If the organization owns and operates a truck or contracts the haul- 

 ing of the fruit from the orchards to the packing house, the revenue 

 derived from that source is credited to hauling revenue account, as the 

 charges are made against the respective growers' accounts. A sepa- 

 rate account is opened with " Truck expense" if the truck is owned by 

 the association, in order to accumulate the costs of operation. If the 

 hauhng is done under contract, an account is opened under the name 

 of the contractor for recording the payments made on the contract. 



Interest. — To the interest account are charged all items of interest 

 on notes payable, including bank discount. The account is credited 

 with all items of interest accruing from notes receivable. 



Box making. — The cost of making boxes is shown by this account. 

 It will be necessary to open the account only in concerns selling made- 

 up boxes to the growers. 



Expense accounts. — A segregation of the office expenses and those 

 pertaining to the conduct of the business in general is made by means 

 of accounts under the following captions : Expense, advertising and 

 printing; Auto; Dray age; Insurance and taxes; Labor (not charge- 



