Erin is considering switching her business from the cash method to the accrual method at the...

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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 amount and timing of her $481 adjustment assuming the IRS grants Erin's request in the following alternative scenarios. a. At the end of year 0/beginning of year 1, Erin's business has $19,200 of accounts receivable and $24,000 of accounts payable that have not been recorded for tax purposes. Erin's $481 Adjustment Decrease in net income by Number of year(s) b. At the end of year 0/beginning of year 1, Erin's business reports $37,800 of accounts receivable and $18,400 of accounts payable that have not been recorded for tax purposes. Erin's $481 Adjustment vby Number of year(s) 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 $481 adjustment assuming the IRS grants Erin's request in the following alternative scenarios. a. At the end of year 0/beginning of year 1, Erin's business has $19,200 of accounts receivable and $24,000 of accounts payable that have not been recorded for tax purposes. Erin's $481 Adjustment Decrease in net income by Number of year(s) b. At the end of year 0/beginning of year 1, Erin's business reports $37,800 of accounts receivable and $18,400 of accounts payable that have not been recorded for tax purposes. Erin's $481 Adjustment vby Number of year(s)

Answer rating: 100% (QA)

Answer a Decrease in net income PayablesReceivables 2400019200 4... View the full answer