Al is a medical doctor who conducts his practice as a sole proprietor. During 2020, he received cash of $657,200 for medical services. Of the amount collected, $54,000 was for services provided in 2019. At the end of 2020, Al had accounts receivable of $98,200, all for services rendered in 2020. In addition, at the end of the year, Al received $15,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2021. a. Compute Alls gross income for 2020 using the cash basis of accounting. $ 672,200 Feedback Check My Work The year an item of income is subject to tax often depends upon which acceptable accounting method the taxpayer regularly employs. The three primary methods of accounting are (1) the cash receipts and disbursements method, (2) the accrual method, and (3) the hybrid method. Most individuals use the cash receipts and disbursements method of accounting, whereas most larger corporations use the accrual method. b. Compute Al's gross income for 2020 using the accrual basis of accounting. 716,400 x