False Value Hardware began 2024 with a credit balance of $31,800 in the refund liability...
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Accounting
False Value Hardware began 2024 with a credit balance of $31,800 in the refund liability account. Sales and cash collections from customers during the year were $680,000 and $640,000, respectively. False Value estimates that 7% of all sales will be returned. During 2024, customers returned merchandise for credit of $23,000 to their accounts.
False Value Hardware's 2024 income statement would report net sales of:
$657,000.
$632,400.
$671,200.
$648,200.
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