Mr. Smith gathered 10,000 bushels of corn from his farm in October, 1985. He stored the corn and later sold it in May, 1986. With the accounting method he uses, he reported the value of the corn as income on his 1985 income tax return. His accounting method is the__________ .

Mr. Smith gathered 10,000 bushels of corn from his farm in October, 1985. He stored the corn and later sold it in May, 1986. With the accounting method he uses, he reported the value of the corn as income on his 1985 income tax return. His accounting method is the__________ .



Answer: accrual method


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