What is the balance in the allowance for sales returns

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Reference no: EM131211352

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $28,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2016? $11,000. $39,000. $43,000. $21,000.

Reference no: EM131211352

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