Shadow Services Uses the Accrual Method and Reports on a Calendar

question 124

Essay

Shadow Services uses the accrual method and reports on a calendar year. This year, Shadow agreed to a uniform-cleaning contract with Odie Cleaning. Under the contract, Odie bills Shadow for cleaning services as the services are provided. At year-end, Shadow paid Odie $2,350 for the services rendered during the year. In addition, Shadow paid Odie $700 for cleaning services expected in January of next year. What amount, if any, can Shadow deduct for the cleaning services this year?

---

Definitions:

Culturally Diverse

Representing a variety of cultural backgrounds, perspectives, and practices within a group or society.

Helping Relationship

A supportive interaction between two parties, typically involving guidance or assistance from one to the other.

Vulnerable Position

A vulnerable position refers to a state or condition in which an individual or group is open to harm, attack, or damage, either physically or emotionally.

Racial Identities

The aspect of an individual's identity that relates to their race or racial background and how they perceive themselves within that context.