I have a non-profit agency client.   They rent office space but only pay a portion of the actual rent.  The balance is donated to them in kind.  How would I record this?  The total going rate for rent is $2500 but they make a payment each month of $500 which I debit rent and credit the bank.  How do I record the other $2000?   They want this reflected on their income statement.   Since I  cannot credit the bank for this I assume I should just make a double separate entry to debit rent expense and credit an inkind rent donation revenue account?   They end up cancelling each other out as far as the net income balance goes but this is the only way I can make it work unless there is another proper way to record it?