During 2021, sales and cash collections from customers for Saka Company were $260,000 and $210,000, respectively. During 2021, customers returned merchandise for credit of $7,000 to their accounts. The balance in the refund liability account at the end of 2021 was $6,500. Saka estimates that 4% of all sales will be returned. How much was the balance in the refund liability account at the beginning of 2021? Multiple Choice o $7,100 o $5,100 o $3.100 o $1,100