Rusty Hardware makes only cash sales. It began 2016 with a credit balance of $32,000 in the refund liability account. Sales during 2016 were $600,000. Rusty estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $28,000 to their accounts.

What will be the income statement amount for net sales assuming no credit sales were made?

a) 600,000

b) 568,000

c) 564,000

d) 604,000