Tu operates a sole proprietorship, maintaining the business records under the accrual method of accounting. Tu performs services for a client and sends the client a bill for $10,000. Nine months later, before payment is received by Tu, the client files bankruptcy, with no assets available for unsecured creditors such as Tu. Tu will deduct

A) $12,000 ordinary loss.

B) $3,000 long-term capital loss.

C) $3,000 short-term capital loss.

D) $0.