On June 2,2013,Fred's TV Sales Sold Mark a Large HD

question 20

Multiple Choice

On June 2,2013,Fred's TV Sales sold Mark a large HD TV,on account,for $12,000.Fred's TV Sales uses the accrual method.In 2014,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 2015,final settlement was made and Fred received $1,000.How much bad debt loss can Fred deduct in 2015?

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