Spring City Foundry Co. v. Commissioner
United States Supreme Court
292 U.S. 182 (1934)
Relevant factsFree
Spring City (plaintiff), an accrual-method taxpayer, sold goods to a purchaser in 1920 who went bankrupt that same year, leading Spring City to believe the resulting debt was not includable in its 1920 income since it would not be collected.
IssueFree
Whether, under the accrual method of accounting, accounts receivable that become uncollectible in the same year they accrue are includable in gross income.