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Flimflam Corp had sales to customers of $485,000 during 2015. The company has consistently experienced a 35% gross profit percentage and estimates that 5% of
Flimflam Corp had sales to customers of $485,000 during 2015. The company has consistently experienced a 35% gross profit percentage and estimates that 5% of all sales will be returned. During 2015, customers returned merchandise for credit of $16,000 to their accounts. The balance in the allowance for sales returns account at the beginning of 2015 was $24,000. What is the balance in the allowance for sales returns account at the end of 2015? Round all calculations to the nearest dollar.
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