Petal, Inc. is an accrual basis taxpayer operating a wholesale hardware business. Petal uses the aging approach to calculate the reserve for bad debts for financial accounting purposes. During 2020, the following occur associated with bad debts:

Credit sales $400,000

Collections on credit sales 250,000

Amount added to the reserve in 2020 12,000

Beginning balance in the reserve 0

Debts that became uncollectible during 2020 10,000

The amount of the deduction for bad debt expense for Petal for 2020 is:

a. $10,000.

b. $12,000.

c. $22,000.

d. $140,000.

e. None of the above.