Sales and cash collections from customers during the year

Reference no: EM131023359

1. False Value Hardware began 2016 with a credit balance of $31,800 in the allowance for sales returns account. Sales and cash collections from customers during the year were $740,000 and $700,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $25,000 to their accounts.

What is the balance in the allowance for sales returns account at the end of 2016?

Reference no: EM131023359

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