Change of accounting method: where to post A/R adjustment on Schedule C?

[jazzstan]

For a change of accounting method, I have a reduction for past A/R reported as sales.  Where do I post on schedule C?   Problems: If I post to line 1a, it will be a negative number. (red flag for sales, no?).    If I post it to line 1b, my cash based sales will be less than what's was reported on the 1099-MISC.   

Do I just make the adjustment on 1b and include an explanation on line 1f (for why sales <> 1099)???   I suppose both are correct, but what will cause the least consternation for the IRS? 

[Rick19744]

So it would be good to have a few more facts:

• Is this just a one time error, or have you been handling this incorrectly for more than one year
• Explain why you would have included accounts receivable in income when you are a cash basis taxpayer; which is most likely the case
• Explain in a little bit of detail what exactly you have done (or did) in the past
• What type of business are you involved in?

[jazzstan]

No error. When I started the wholesale business 22 years ago, the accrual method was required because I had inventory.  I will be filing a 3115 to take advantage of recent reg changes to convert to cash basis, which means I will be writing off A/R for the accrued sales and writing off the inventory-on-hand at the beginning of the period  (the inventory adjustment is simple on Schedule C).   

The question is:   which line of schedule C should I make the adjustment removing the accrued sales (aka A/R)?