Timmons Company had a January 1, 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: Apr 15 Bard's account receivable of $5700 was deemed uncollectable. July 1 Drake paid the full amount of a previously written-off account receivable. This receivable of $2300 had been written off in the prior year. Dec 31. Bad debts expense of $7500 was recorded.

a. What amount should appear in the allowance for doubtful accounts in the December 31, balance sheet for the current year?

b. How are the direct write-off method and the allowance method applied in accounting for uncollectible accounts receivables? Please explain in words.