False Value Hardware began 2024 with a credit balance of $32,500 in the refund liability account. Sales and cash collections from customers during the year were $730,000 and $690,000, respectively. False Value estimates that 6% of all sales will be returned. During 2024 , customers returned merchandise for credit of $21,000 to their accounts. False Value Hardware's 2024 income statement would report net sales of: $718,500 $697,500. $686,200 $697,500 $686,200 $709,000