On June 2, 2016, Fred's TV Sales Sold Mark a Large

question 11

Multiple Choice

On June 2, 2016, Fred's TV Sales sold Mark a large HD TV, on account, for $12,000. Fred's TV Sales uses the accrual method. In 2017, when the balance on the account was $8,000, Mark filed for bankruptcy. Fred was notified that he could not expect to receive any of the amount owed to him. In 2018, final settlement was made and Fred received $1,000. How much bad debt loss can Fred deduct in 2018?

• A)$0
• B)$7,000
• C)$8,000
• D)$12,000
• E)None of the above

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