To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

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To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are indeed totaled, and the difference, representing either net income or net loss, is placed on the side with the smaller total to balance the columns.

To Compute Net Income or Net Loss, the Debit and Credit