False Value Hardware began 2016 with a credit balance of $32,800 in the allowance for sales returns account. Sales and cash collections from customers during the year were $570,000 and $530,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $21,000 to their accounts.
What is the balance in the allowance for sales returns account at the end of 2016?