Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

****PLEASE SHOW WORK...THANK YOU**** Sarah Crowly uses the cash receipts method of accounting for her accounting business. On December 25, 2014, she received a $1,000

****PLEASE SHOW WORK...THANK YOU****

Sarah Crowly uses the cash receipts method of accounting for her accounting business. On December 25, 2014, she received a $1,000 check in payment for her services. The following year she was told that the check had bounced. One client offered to give her a check for $500 on December 31, 2014, but Sarah asked him to give it to her the next year, which the client did. Another client gave her a check for $750 on December 31, 2014, but after the bank had closed. Both the $500 and $750 checks cleared the next year. How much does Sarah have to include in her gross income for 2014?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Auditing And Sarbanes Oxley Compliance Key Strategies For Business Improvement

Authors: Dimitris N. Chorafas

1st Edition

036738650X, 978-0367386504

More Books

Students also viewed these Accounting questions