False Value Hardware began 2024 with a credit balance of $31,300 in the refund liability account. Sales and cash collections from customers during the year were $740,000 and $700,000, respectively. False Value estimates that 7% of all sales will be returned. During 2024, customers returned merchandise for credit of $18,000 to their accounts.

What is the balance in the refund liability account at the end of 2024?

$69,800

$51,800

$13,300

$65,100