On June 2,2015,Fred's TV Sales Sold Mark a Large HD

On June 2,2015,Fred's TV Sales sold Mark a large HD TV,on account,for $12,000.Fred's TV Sales uses the accrual method.In 2016,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 2017,final settlement was made and Fred received $1,000.How much bad debt loss can Fred deduct in 2017?

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