Question
3. Automotive Specialties Melanie Mackenzie owns and operates an automobile customization shop, Automotive Specialties, an LLC, with annual income of approximately $18,000,000. The shop specializes
3. Automotive Specialties Melanie Mackenzie owns and operates an automobile customization shop, Automotive Specialties, an LLC, with annual income of approximately $18,000,000. The shop specializes in the sale and installation of custom equipment on the cars. They also do basic auto body repair. Approximately 40% of her sales are with extended credit terms to other retail automotive shops. Discuss whether or not Automotive Specialties is able to use each of the following methods of accounting, and why or why not:
a. the accrual method
b. the cash method
c. the hybrid method
d. the installment sale method
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