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calistoga produce estimates bad debt expense at 1/2% of credit sales. the company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650 respectively, at december 31, 2020. during 2021, callistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. calistoga's final balance in its allowance for uncollectible accounts at december 31, 2021, is:
calistoga produce estimates bad debt expense at 1/2% of credit sales. the company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650 respectively, at december 31, 2020. during 2021, callistoga's credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. calistoga's final balance in its allowance for uncollectible accounts at december 31, 2021, is:
Final answer:The final balance in Callistoga's allowance for uncollectible accounts at December 31, 2021, is$318,930.Explanation:The bad debt expense for Callistoga can be calculated by finding half a percent of the credit sales. In this case, the credit sales in 2021 were $315,000, so the bad debt expense would be 0.5% of $315,000, which is $1,575. To find the final balance in the allowance foruncollectibleaccounts, we need to consider the collections, write-offs, and the previous balance. The collections were $319,000 and the write-offs were $1,720. So, the net increase in the allowance for uncollectible accounts is $319,000 - $1,720 = $317,280. The final balance can be calculated by adding the net increase to the previous balance: $1,650 + $317,280 = $318,930.Learn more about Allowance for uncollectible accounts here:brainly.com/question/31142008#SPJ11...