Question: On June 2 , 2 0 2 3 , Juan's TV Sales sold Mark a large HD TV on account for $ 1 2 ,

On June 2,2023, Juan's TV Sales sold Mark a large HD TV on account for $12,000. Juan's TV Sales uses the accrual method. In 2024, when the balance on the account was $8,000, Mark filed for bankruptcy. Juan was notified that he could not expect to receive any of the amount owed to him. In 2025, final settlement was made and Juan received $1,000. How much bad debt loss can Juan deduct in 2025?
a. $8,000
b. $7,000
c. $12,000
d. $0

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