False Value Hardware began 2018 with a credit balance of $32,900 in the allowance for sales returns account. Sales and cash collections from customers during the year were $610,000 and $570,000, respectively. False Value estimates that 7% of all sales will be returned. During 2018, customers returned merchandise for credit of $27,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2018?