False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $28,000 to their accounts. False Value's 2016 income statement would report net sales of: $622,000. $607,000. $646,000. $611,000.