Walter owns a cleaning business. Upon going over Walter's tax records, his preparer has found deficiencies in his recordkeeping. Which of the following examples represents a correct method of keeping records?
1) Actual automobile expenses containing all expenses for the vehicle for the year except for gas receipts and mileage records. Walter is relying on credit card receipts for the gas receipts.
2) Storage space rent receipts for equipment purchased for business use only and used on a regular basis
3) One checking account for his business, out of which he withdraws money for personal expenses, writes checks for day-to-day living expenses, and uses the debit/charge card for personal point of sale items when possible
4) Purchases of supplies for the business that Walter sometimes uses for his own home. The total of all supplies purchased is provided to the preparer; however, Walter has not separated the items used for his home.