I own a small business that uses a cost method to value inventory. On around October 20th, 2020 I took delivery of an item that I sold shortly thereafter. I paid for this item with a 30% deposit and mailed the remaining balance on November 23, 2020 (for which I have a check # and payment voucher). On January 18, 2021, the vendor from whom I had purchased the item notified me that 70% balance payment had not been received. I immediately stopped payment on the check and wired the full amount owed. Considering the circumstances, can I expense the 70% balance payment in the 2020 tax year?
