Petal,IncIs an Accrual Basis Taxpayer

Multiple Choice

Petal,Inc.is an accrual basis taxpayer.Petal uses the aging approach to calculate the reserve for bad debts.During 2015,the following occur associated with bad debts. Credit sales $400,000 Collections on credit sales 250,000 Amount added to the reserve 10,000 Beginning balance in the reserve -0- Identifiable bad debts during 2015 12,000 The amount of the deduction for bad debt expense for Petal for 2015 is:

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