in a large skillet, fry the bacon until crisp. Remove the bacon from the skillet. Sauté the chicken in the bacon drippings until browned. Add onion and sauté for five minutes. Add the mushrooms and sauté for one minute.
Sprinkle the flour in the skillet and toss lightly. Crumble the bacon and add it to the skillet. Add remaining ingredients, cover and simmer for 30 minutes or until the chicken is tender. If the gravy thickens too much, add water. Serve with rice or new. Makes four servings