Franco Is Owner and Operator of a Cleaning Service Who $\$ 5,000$

Franco is owner and operator of a cleaning service who uses the accrual method of accounting. He receives the following payments on December 31, 2017, the last business day of his tax year:
?
$\$ 5,000$ - Checks received from customers for services rendered during November and December 2018. The checks are deposited in his bank account on January 4, 2019.
$\$ 4,000$ - Checks received from customers for services to be rendered during 2019 . The checks are received in the morning mail and deposited in his bank account on December 31, 2018.
$\$ 2,400$ - A check received from a customer for a service contract. The services under the contract are to be rendered in 2019. The customer met Franco at the New Year's Eve party and gives Franco the check at 11:30 p.m. The check is deposited in his bank account on January 4, 2019.
How much of the $11,400 collected by Franco on December 31 must be included in his 2018 gross income?

A) $5,000
B) $6,400
C) $7,400
D) $9,000
E) $11,400