QUESTION 27 Blue Jay Company began the year with a credit balance in the Refund Liability account of $96,000. Credit sales during the year were $1,450,000. Blue Jay customers made cash payments on account of $1,388,000. During the year, customers returned $72,000 worth of goods. Blue Jay estimates that 6% of credit sales will be returned. What is the balance in Blue Jay's Refund Liability account at the end of the year? $87,000 O $111,000 $255,000 O $107,280

Blue Jay Company began the year with a credit balance in the Refund Liability account of $96,000. Credit sales during the year were $1,450,000. Blue Jay customers made cash payments on account of $1,388,000. During the year, customers returned $72,000 worth of goods. Blue Jay estimates that 6% of credit sales will be returned. What is the balance in Blue Jay's Refund Liability account at the end of the year? $87,000$111,000$255,000$107,280 Blue Jay Company began the year with a credit balance in the Refund Liability account of $96,000. Credit sales during the year were $1,450,000. Blue Jay customers made cash payments on account of $1,388,000. During the year, customers returned $72,000 worth of goods. Blue Jay estimates that 6% of credit sales will be returned. What is the balance in Blue Jay's Refund Liability account at the end of the year? $87,000$111,000$255,000$107,280