Answer: Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021 is $246.
Explanation: Calistoga Produce applies percentage of credit sales method to estimate its bad debt expense. So 0.60% of $331,000 (credit sales) = $1,986 and the balance in allowance for doubtful accounts is $1,520. The following journals would be recorded to adjust for the estimate:
Debit Bad debt expense                                      $466
Credit Allowance for doubtful accounts           $466
The $466 is the difference between $1,986 and $1,520
Now that the company writes off $1,740 accounts receivable, the following journal entries apply:
Debit Allowance for doubtful account              $1,740
Credit Accounts receivable                                $1,740
In summary, the allowance account movement is as follows:
Opening balance                                                 $1,520
Additional bad debt expense                                 466
Write-off during the year                                     (1,740)
Balance, end of the year                                       $246