Calistoga produce estimates bad debt expense at ½% of credit sales. the company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at december 31, 2017. during 2018, calistoga'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, 2018, is:

Given:
Estimated bad debts expense: 1/2% or 0.5% of credit sales.
2017
Accounts Receivable - 471,000
allowance for uncollectible accounts - 1,650
2018
Credit sales - 315,000
Credit collection - 319,000
Accounts receivable written off - 1,720

Bad debts expense 2018
315,000 * 0.5% = 1,575

Allowance for uncollectible account 2017:     1,650
less: Accounts receivable written off             (1,720)
Allowance for uncollectible account                   (70) debit

Allowance for uncollectible account 2018:
(70) + 1,575 = 1,505

Calistoga's final balance in its allowance for uncollectible accounts at december 31, 2018, is $1,505

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan