Bob Jones is a sole proprietor who operates a deck repair business. In March 2020, Bob contracted with the condo owners’ association for a Tuscaloosa condo complex to repair and renovate the existing wooden decks on the twenty condo units in the complex.    Bob agreed to perform the services for $100,000.   His crew started work during the first week of March, and the project will be completed by the last week of December 2020.   Bob will send the invoice to the condo owners association on January 2, 2021, but the payment will be made within 15 days of the invoice date and will be delivered to Bob during the first two weeks of January 2021.

1. If Bob uses the accrual method of accounting, when must Bob recognize the income from this work?
2. Alternatively, if Bob uses the cash method of accounting, when must Bob recognize the income from this work?  

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If Bob uses the accrual method of accounting Bob must recognize the ... View the full answer