False Value Hardware began 2021 with a credit balance of $32,700 in the refund liability account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 5% of all sales will be returned. During 2021, customers returned merchandise for credit of $25,000 to their accounts. What is the balance in the refund liability account at the end of 2021? Multiple Choice $40,200. $57,500. $7,700. $32,500.