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.

46) Based on the preceding information, which of the following would be the correct account balances for 20X7 if Gotham City used the purchase method of accounting for inventories?

	Expenditures			Inventory of Supplies
A)	$	25,000		$	0
B)	$	17,000		$	8,000
C)	$	17,000		$	0
D)	$	25,000		$	8,000

A) Option A

B) Option B

C) Option C

D) Option D

Answer: D

Please explain using math