Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $11,300 of common stock for cash. 2) The company paid cash to purchase $7,000 of inventory. 3) The company sold inventory that cost $4,400 for $8,650 cash. 4) Operating expenses incurred and paid during the year, $3,900. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $9,600 of inventory. 2) The company sold inventory that cost $8,600 for $15,250 cash. 3) Operating expenses incurred and paid during the year, $4,900. Note: Sanchez uses the perpetual inventory system. The balance in the inventory account shown at December 31, Year 2 is: Multiple Choice O $17,200 $8,000. $1,000 $3,600