Nancy, Inc. is an accrual basis taxpayer. Nancy uses the aging approach to calculate the reserve for bad debts. During 2020, the following occur associated with bad debts: Credit sales $300,000 Collections on credit sales 280,000 Amount added to the reserve 12,000 Beginning balance in the reserve - 0 - Actual identifiable bad debts during 2020 10,000 The amount of the deduction for bad debt expense for Nancy for 2020 is:
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