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Problem 4 - 3 1 ( Algorithmic ) ( LO . 2 , 5 ) Al is a medical doctor who conducts his practice as

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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 $341,800 for medical services. Of
the amount collected, $42,000 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 $8,000 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.
$
b. Compute Al's gross income for 2023 using the accrual basis of accounting.
$
c. Advise Al on which method of accounting he should use.
Al should use the.
of accounting so that he will not have to pay income taxes on the
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