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88: BULLETIN 865, U.S; DEPARTMENT OF AGRICULTURE. 
Inreresr (N-7). 
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DEBIT: : CREDIT: 
1. At the close of the: period with the 1.. At the close of the peried with: the 
interest accrued during the period interest accrued. during the period 
on Notes Payable. (Credit In- on notes receivable. 
terest Accrued.) 
2. With the discount charged on notes 
receivable discounted. 
The debits or credits offsetting the entries of interest accrued will be made to the 
Interest Accrued account. At the close of the fiscal year the debits of this account 
should be transferred to:the debit of the Loss and Gaim account, and the eredits should 
be transferred: to-the eredit-of Less and Gain account. 
The above method is advisable: for small coneerns.. However, m: case both interest 
paid and interest earned be considerable, it is suggested that separate accounts be 
opened for Interest. Expense and Interest. Earned. 
Loss From Bap Accounts (N8). 
DEBIT: | CREDIT: 
1. At the close of the period with the 1. With the debit balance at the close 
proportion of the estimated annual | of the fiscal year. (Debit Eoss: 
loss through bad aecounts. (Credit and Gaim.) 
Reserve for Doubtful Accounts.) 
MiscELLANEOUS EXPENSE (N9). 
DEBIT: | CREDIT: 
1. With the cost of any items of expense: 1. With the: debit balance: at the close 
not. chargeable to any ef the fore- of. the fiscal year. (Debit Less 
going accounts. and. Gain.) 
To this account should be charged. donations to charitable organizations and any 
other expense that can not be charged to any of the other accounts. 
O.. PURCHASES. 
MercHanpisE PurcaasEs (0:1). 
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DEBIT: CREDIT: 
1. With the cost of all merchandise 1. With the debit balance at the close 
purchased for direct sale during of the fiscal year. (Debit Loss 
the period. and Gain.) 
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