Sanchez Company engaged in the following transactions during Year 1:1)Started the business by issuing $42,000 of common stock for cash.2)The company paid cash to purchase $26,400 of inventory.3)The company sold inventory that cost $16,000 for $30,600 cash.4)Operating expenses incurred and paid during the year, $14,000.Sanchez Company engaged in the following transactions during Year 2:1)The company paid cash to purchase $35,200 of inventory.2)The company sold inventory that cost $32,800 for $57,000 cash.3)Operating expenses incurred and paid during the year, $18,000.Note: Sanchez uses the perpetual inventory system. What is the amount of inventory that will be shown on the balance sheet at December 31, Year 2?

Question

Quizplus · Accepted Answer

At the end of Year 1, the remaining inventory is $10,400 ($26,400 initial purchase - $16,000 sold). In Year 2, $35,200 of inventory is purchased, and $32,800 is sold. Therefore, the ending inventory is $12,800 ($10,400 + $35,200 - $32,800).

Sanchez Company Engaged in the Following Transactions During Year 1:1)Started