ppp: 2 years ago

How should Food costs of a day care be recorded against food program income?

If the food program income is more than what we spent on food and milk, the difference is taxable income so I want to know how to record the two in my general ledger or should I just record the food income and the food cost, and let the tax accountant sort it out? Would the food cost be a cog account or an expense account?

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