Al is a medical doctor who conducts his practice as a sole proprietor. during 2019, he received cash of $334,200 for medical services. of the amount collected, $33,600 was for services provided in 2018. at the end of 2019, al had accounts receivable of $91,400, all for services rendered in 2019. in addition, at the end of the year, al received $11,000 as an advance payment from a health maintenance organization (hmo) for services to be rendered in 2020. compute ai's gross income for 2019 using the cash basis of accounting.

AI's gross income for 2019 using the cash basis of accounting is $345,200

Explanation:

The computation of the gross income using the cash basis of accounting is shown below:

= Cash received for medical services + advance payment received from a  health maintenance organization (HMO)

= $334,200 + $11,000

= $345,200

The other items values are related to the accrual basis of accounting, So we do not consider in the computation part

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