My drain is too far away from the wall. I cannot fit the cabinet.
While I recognize I can push it horizontal arm it is not good enough which means I have to cut pipe which is in the wall.
Can I just cut wall tube and use some kind of adapter?
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I assume your asking about how to tie your sink drain to the wall stub. Standard 1 1/2" PVC drain pipe has slp compression fittings that give you a lot of flexibility in setting up your P trap and drain. In most cases you can make adjustments without shortening the wall stub.
However, in some cases you may have to shorten the wall stub. If you absolutely have to shorten it you can do so by cutting it on the wall side of the connector in the picture. Don't trim off any more than you absolutely have to. Do a square cut and debur the end. You can then buy a new connector and attach it with PVC adhesive. Follow all directions regarding priming, etc.
Here is a guide on setting up a proper P trap:
You have what is called an adjustable P-trap. The horizontal leg that runs into the slip-joint fitting at the wall pipe can be moved in and out of the wall pipe. You simply loosen the slip-joint nut in your picture and slide the trap arm further in to make the whole trap assembly move closer to the wall:
It looks to me like you have at least another inch of horizontal movement toward the wall available to you.