Rex received approval from the IRS to switch from the cash method of accounting to the accrual method of accounting effective January 1 of this year. At year-end of last year, BAM reported accounts receivable that had not been included in income under the accrual method of $14,700 and accounts payable that had not been deducted under the accrual method of $8,250. What amount will increase taxable income (positive) or reduce taxable income (negative) for each of the above scenario? I have tried just about everything I can think of. Thanks for your help!