Petal, Inc The Amount of the Deduction for Bad Debt Expense for Aging

Multiple Choice

Petal, Inc. is an accrual basis taxpayer. Petal uses the aging approach to calculate the reserve for bad debts. During 2014, the following occur associated with bad debts.
$\begin{array}{lr}\text { Credit sales } & \$ 400,000 \\\text { Collections on credit sales } & 250,000 \\\text { Amount added to the reserve } & 10,000 \\\text { Beginning balance in the reserve } & -0- \\\text { Identifiable bad debts during } 2014 & 12,000\end{array}$
The amount of the deduction for bad debt expense for Petal for 2014 is:

A) $10,000.
B) $12,000.
C) $22,000.
D) $140,000.
E) None of the above.