On June 2, 2019, Harold's TV Sales sold Richard a large HD TV, on account, for $12,000. Harold's TV Sales uses the accrual method. In 2020, when the balance on the account was $8,000, Richard filed for bankruptcy. Harold was notified that he could expect to receive 60 cents on the dollar of the amount owed to him. In 2021, final settlement was made and Harold received $5,000. How much bad debt loss can Harold deduct and in which year(s)?