Sanchez Company engaged in the following transactions during Year 1:
- 1) Started the business by issuing
$10,700 of common stock for cash.
Sanchez Company engaged in the following transactions during Year 2:
- 1) The company paid cash to purchase $9,000 of inventory.
- 2) The company sold inventory that cost $8,300 for $14,500 cash.
- 3) Operating expenses incurred and paid during the year, $4,600.
Note: Sanchez uses the perpetual inventory system.
The balance in the inventory account shown at December 31, Year 2 is: