False Value Hardware began 2016 with a credit balance of $31,900 in the allowance for sales returns account. Sales and cash collections from customers during the year were $560,000 and $520,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $26,000 to their accounts.

False Value's 2016 income statement would report net sales of:

$526,400.

$554,100.

$534,000.

$528,100.

False Value Hardware began 2016 with a credit balance of $31,800 in the allowance for sales returns account. Sales and cash collections from customers during the year were $570,000 and $530,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $18,000 to their accounts.

What is the balance in the allowance for sales returns account at the end of 2016?

$13,800.

$52,200.

$34,200.

$48,000.