Mayfair Gamer Software uses the direct charge-off method to account for uncollectible accounts expenses

Mayfair Gamer Software uses the direct charge-off method to account for uncollectible accounts expenses as they occur. Selected transactions for 2013 and 2014 follow. The accounts involved are Accounts Receivable, Notes Receivable, and Uncollectible Accounts Expense.

2013

• March 15: Tony Smith, a credit customer, dies owing the firm $5,000. The account is written off.

• April 22: Tom Greenberg, a credit customer who owes the firm $3,000, declares bankruptcy. The amount is considered uncollectible and written off.

• June 16: The executor of the estate of Tony Smith sends the firm $1,000 in partial settlement of the account written off on March 1 5. The cash obtained has already been recorded.

• July 13: The bankruptcy court sends the firm $2,200 in settlement of the account receivable of Tom Greenberg, which was written off on April 22. The cash obtained has already been recorded in the cash receipts journal.

•  October 8: The account owed by a customer, Lisa Holmes, in the amount of $2,100 is determined worthless and is written off.

2014

• February 12: Tom Greenberg pays the remainder of the account that had previously been written off. (See transactions of April 22 and July 1 3). The cash obtained has already been recorded in the cash receipts journal.

Requirements:

a. Record each transaction in general journal form.

b. When the worksheet is prepared at the end of 2013, what balance should be listed for Uncollectible Accounts Expense?