Calistoga's adjusted allowance for uncollectible accounts at December 31, 2009, is:

Question

Quizplus · Accepted Answer

To calculate the adjusted allowance for uncollectible accounts, we need to use the aging method to estimate the expected losses from accounts receivable. According to the problem, the aging schedule indicates that $20,100 of the accounts receivable balance of $201,000 is expected to be uncollectible. 
The current allowance balance is $1,545, so to adjust this balance, we need to increase it by the expected losses of $20,100. Therefore, the adjusted allowance for uncollectible accounts at December 31, 2009, is $20,100 + $1,545 = $1,505. 
Therefore, the best choice is B.

Calistoga's Adjusted Allowance for Uncollectible Accounts at December 31, 2009