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Problem 4-31 (Algorithmic) (LO. 2,5) Al is a medical doctor who conducts his practice as a sole proprietor. During 2020, he r
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Answer #1

1. As per Cash Basis -

As per Cash Basis Cash Received $ 474,800 Advance Cash Received $ 16,500 Sale Revenue $ 491,300

2. As per Accrual Basis -

As per Accrual Basis Cash Received $ 474,800 2019 $ 54,000 2020 $ 420,800 Accounts Receivable $ 89,700 Sale Revenue $ 510,500

3. AI should you accrual basis of accouting so that he will not have to pay taxes on the $16,500 Uneanred Revenue.

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