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Hull Girl
Level 1

How to record deferred interest

I have an EIDL loan that we are not paying on the principal or interest yet. 

I have the loan principal set up as a long term liability.

 

How do I record the interest accrual? I have a short term liability account set up - I assume I credit (increase) that account every month by the deferred interet, but what account do I debit?

 

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