Question $10$

Michael operates a proprietorship using the cash method of accounting, and this year he

received the following:

$$100$ in cash from a customer for services rendered this year

a promise from a customer to pay $$200$ for services rendered this year

$$300$ in cash from a customer for services rendered in the prior year. The customer took a

long time to pay due to cash flow problems.

a check for $$170$ for services rendered this year that Bill forgot to cash

How much income should Michael realize on Schedule C$?$

$$270$

$$570$

$$600$

$$770$

$$300$

$$100$