On June 2, 2020, Lenny's TV Sales sold Jeff a large HD TV on account for $12,000. Lenny's TV Sales uses the accrual method. In 2021, when the balance on the account was $8,000, Jeff filed for bankruptcy. Lenny was notified that he could reasonably expect to receive $1,000 of the amount owed to him. In 2022 final settlement was made and Lenny received $1,000. How much bad debt loss can Lenny deduct in 2021?

a. 0

b. 7,000

c. 8,000

d. 12,000

e. none of the above