Timmons Company Had a January 1 Credit Balance in Its

Essay

Timmons Company had a January 1 credit balance in its Allowance for Doubtful Accounts of $7,000 for the current year.The following transactions and events affected the Allowance for Doubtful Accounts during the current year:
$\begin{array}{|l|l|}\hline\text { Apr. 15 } & \text { Bard's account receivable of } \$ 5,700 \text { was deemed uncollectible. } \\\hline \text { July 1 } & \begin{array}{l}\text { Drake paid the full amount of a previously written-off account receivable. This } \\\text { receivable of } \$ 2,300 \text { had been written off in the prior year. }\end{array} \\\hline \text { Dec. 31 } & \text { Bad debts expense of } \$ 7,500 \text { was recorded. }\\\hline\end{array}$
What amount should appear in the allowance for doubtful accounts in the December 31 balance sheet for the current year?