John is a painter and supplier of homemade paint. He is an accrual basis taxpayer and files a Schedule C. John painted Susan's house and billed her $12,000. Susan paid John $10,000 and refused to pay the remainder of the bill, claiming the fee to be exorbitant. John took Susan to Small Claims Court for the unpaid amount and was awarded a $1,000 judgement. John was able to collect the judgement but not the remainder of the bill from Susan. What amount of loss may John deduct in the current year?