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?

Answer rating: 100% (QA)

Opening balance of sales return allowances account 31800 credit ... View the full answer