> Question 32 2.5 pts Jed Company, a cash method taxpayer, owed a $10,000 overdue account payable to a major supplier. The supplier agreed to settle the account for $9,000 cash from Jed. Which of the following statements is true? Jed recognizes $1,000 income because of the settlement. Jed recognizes no income because of the settlement. Jed can deduct the $9,000 payment. Jed can deduct a $1,000 bad debt expense