Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8.
-Based on the preceding information,which of the following would be the correct account balances for 20X8 if Gotham City used the purchase method of accounting for inventories?

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The Answer of Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8.
-Based on the preceding information,which of the following would be the correct account balances for 20X8 if Gotham City used the purchase method of accounting for inventories?

Gotham City Acquires $25,000 of Inventory on November 1, 20X7