Petal, Inc. is an accrual basis taxpayer. Petal uses the aging approach to calculate the reserve for bad debts. During 2019, the following associated with bad debts occur. 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 2019 12,000 The amount of the deduction for bad debt expense for Petal for 2019 is:
(a) $10000
(b) $12000
(c) $22000
(d) $140000
(e) None of these
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