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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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