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could you please help to answer this question please, thanks+ Problem 4-31 (Algorithmic) (LO. 2, 5) Al is a medical doctor who conducts his practice
could you please help to answer this question please, thanks+
Problem 4-31 (Algorithmic) (LO. 2, 5) Al is a medical doctor who conducts his practice as a sole proprietor. During 2023 , he received cash of $623,000 for medical services. Of the amount collected, $32,400 was for services provided in 2022. At the end of 2023, Al had accounts receivable of $88,000, all for services rendered in 2023. In addition, at the end of the year, Al received $17,500 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2024. a. Compute Al's gross income for 2023 using the cash basis of accounting. Feedback 7 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 2023 using the accrual basis of accountingStep by Step Solution
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