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Sanchez Company engaged in the following transactions during Year 1:

  1. 1) Started the business by issuing

$10,700 of common stock for cash.

  • 2) The company paid cash to purchase $6,700 of inventory.
  • 3) The company sold inventory that cost $4,100 for $7,900 cash.
  • 4) Operating expenses incurred and paid during the year, $3,600.

  • Sanchez Company engaged in the following transactions during Year 2:

    1. 1) The company paid cash to purchase $9,000 of inventory.
    2. 2) The company sold inventory that cost $8,300 for $14,500 cash.
    3. 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:


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