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Erin is considering switching her business from the cash method to the accrual method at the beginning of next year (year 1). Determine the
Erin is considering switching her business from the cash method to the accrual method at the beginning of next year (year 1). Determine the amount and timing of her 5481 adjustment assuming the IRS grants Erin's request in the following altemative scenarios. a. At the end of year O/beginning of year 1, Erin's business has S23,600 of accounts receivables and $28, 700 of accounts payables that have not been recorded for tax purposes. by Number of year(s) b. At the end of year O\beginning of year 1, Erin's business reports $33,300 of accounts receivables and $15,000 of accounts payables that have not been recorded for tax purposes. by Number of year(s)
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