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