During 2015, Scribe Company's customers returned merchandise for a credit of $17,750 to their accounts. Sales and cash collections from customers during the year were $425,000 and $390,000, respectively. Scribb Company began 2015 with a credit balance of $35,000 in the allowance for sales returns account. If the ending balance in the allowance for sales returns is $38,500, what percentage of sales is expected to be returned? Round our answer to the nearest whole percent. Please show work if possible.

1%

8%

9%.

7%.

5%.

4%.

3%

None of the above.