On June 2, 2016, Fred's TV Sales Sold Mark a Large

On June 2, 2016, Fred's TV Sales sold Mark a large HD TV, on account, for $12,000. Fred's TV Sales uses the accrual method. In 2017, when the balance on the account was $8,000, Mark filed for bankruptcy. Fred was notified that he could not expect to receive any of the amount owed to him. In 2018, final settlement was made and Fred received $1,000. How much bad debt loss can Fred deduct in 2018?

A) $0
B) $7,000
C) $8,000
D) $12,000
E) None of the above