Here is what I would focus on. First of all, you should DEMAND any photos of the damages in court and ask to inspect them individually for each itemization. Say you were never provided this. If they don't have it with them, say that the apartment was in pristine condition and matched the move-in condition. Without photographic proof, say there is no verification of damage.
1. Repair carpet throughout stains and burns - $555. Do what Mag says, get quotes around town. Get the square footage of your company and ask what is a reasonable rate. Your "evidence" would be the pre-inspection, your bill for cleaning the carpets if you have it, and estimates for spot stain and burn cleaning.
2. Avista (Electricity): Say you vacated the property on XXXXX date. All lights, heating, were turned off. Ask them if they entered the premises during this period in court. Do you have any documentation of your move-out date? If so, copy that and show that you were no longer in there. If they entered the property, they did so without giving you any notice so there's a violation right there if they try to argue your lease had not ended.
3. Repair vinyl floor entry (8 in scratch) - $75 (listed in move-in condition report). Easy. Just say its in the move-in report.
4. Repair kitchen countertop chipped - $75 (Scratches listed on move-in condition report, but I don't recall any chips). Easy. Just don't say you don't recall any "chips". Say it is as it was listed in the move-in report. Never admit anything that can be interpreted. Just say, the damage was listed on the move-in report.
5. Drywall repair excessive nail/screws - $100 (About 48 total holes 15 of which were from putting up curtain rods). You'll pay this probably.
6. Replace closet door 4 nails and scratched - $55 (Don't know what they're talking about here. Never put nails in any door). Ask for a photo.
7. Replace damaged door bathroom wht plastic - $55 (Might be referring to a robe hook that was there when we moved in, but I don't know.). Ask for photo of damage.
8. Processing Fee - PCR at possession. Ask them what this is. Tell them you are not responsible for any processing fee. Ask them to show you in the lease where they are entitled to this (examine the lease to make sure its not in there though).
When you speak to the judge, mention that this was all unexpected, frivolous and sent to you once you had already moved out of Spokane (assuming this is the case). Argue that what they are doing is underhanded in the expectation you would not show and that you had to travel great lengths to travel, take time out of work.
Say you attempted to question the bill and settle it. Bring your letters and make it a point that they were not willing to work with you, explain the charges, etc. Make sure you say this sentence on the record to the judge
"I believe that they were purposefully avoiding answering my questions out of bad faith"
make it seem like that you made every effort at rectifying the situation and that they are using the small claims system to avoid a proper explanation/documentation of damages. Print out the complaints and the fine they had to pay (just a few pages and highlight key phrases) just in case, and say that this seems to be their common practice.