Alabama Construction, Inc., an accrual basis taxpayer, billed a client in December 2014 $12,000 for services performed. In March 2015, the...

Alabama Construction, Inc., an accrual basis taxpayer, billed a client in December 2014 $12,000 for services performed. In March 2015, the corporation received a check from the client for $10,000. Included with the check was a letter stating that some of the services were not performed correctly. After investigating the matter, Alabama Construction agreed that the customer was correct. Alabama Construction must include $12,000 in its 2014 income, but will take a deduction of $2,000 in 2015