Both the 700 and 950 checks cleared the next year how much


Sarah Bates uses the cash receipts method of accounting for her accounting business. On December 28, 2015, she received a $1,480 check in payment for her services. The following year she was told that the check had bounced. One client offered to give her a check for $700 on December 31, 2015, but Sarah asked him to give it to her the next year, which the client did. Another client gave her a check for $950 on December 30, 2015, but after the bank had closed. Both the $700 and $950 checks cleared the next year. How much does Sarah have to include in her gross income for 2015?

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Accounting Basics: Both the 700 and 950 checks cleared the next year how much
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