Answer:
$1,345
Explanation:
Calculation to determine what Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is
First step is to calculate the Expense amount
Expense=Credit sales $315,000* .5%
Expense=$1,575
Second step is to calculate the Allowance
Allowance 12/31/2020 $1,650
Less Write-offs(1,880)
Allowance ($ 230)debit
Now let calculate the final balance in its allowance for uncollectible accounts
December 31, 2021 allowance for uncollectible accounts= ($230) + $1,575
December 31, 2021 allowance for uncollectible accounts=$1,345
Therefore Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2021, is $1,345