False Value Hardware began 2018 with a credit balance of $32,000 in the allowance for sales returns

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Question:

False Value Hardware began 2018 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. In 2018, customers returned merchandise for a credit of $28,000 to their accounts.

False Value Hardware's 2018 income statement would report net sales of:10)

A) $646,000.B) $622,000.C) $611,000.D) $607,000.

11) The allowance for uncollectible accounts is a:11)_