False Value Hardware began 2020 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 2020 customers returned merchandise for credit of $28,000 to their accounts. False Value Hardware's 2020 income statement would report net sales of: 1) $646,000. 2) $622,000. 3) $607,000. 4) $611,000