Lacazette Company began 2021 with a credit balance of $87,000 in the refund liability account. Sales and cash collections from customers during the year were $750,000 and $610,000, respectively. Lacazette estimates that 8% of all sales will be returned. The balance in the refund liability account at the end of 2021 was $76,500. What is the amount of merchandise returned during 2021?

Multiple Choice

• $59,300

• $92,900

• $70,500

• $81,700