Fabricio, Inc The Amount Deductible for Bad Debt Expense on Fabricio's Tax

Fabricio, Inc. is an accrual-basis corporation. It ages its receivables to calculate the addition to its reserve for bad debts. The following were reported during the current year: $\begin{array}{ll}\text { Credit sales }&\$300,000 \\\text { Collections on credit sales } &260,000\\\text { Amount added to the reserve for bad debts }&25,000\\\text { Beginning balance in the reserve }&0\\\text { Identifiable bad debts written off cluring the current year }&18,000\end{array}$ The amount deductible for bad debt expense on Fabricio's tax return for the current year is:

A) $18,000
B) $25,000
C) $40,000
D) $43,000