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

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.
- What is the balance in the allowance for sales returns account at the end of 2018?

A) $11,000.
B) $39,000.
C) $43,000.
D) $21,000.