False Value Hardware Began 2018 with a Credit Balance of $32,000

question 134

Multiple Choice

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. During 2018, customers returned merchandise for credit of $28,000 to their accounts.
-False Value Hardware's 2018 income statement would report net sales of:

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