Use the Following for Questions

question 27

Multiple Choice

Use the following for questions
Sanchez Company engaged in the following transactions during 2015:
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 2016:
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.
-The balance in the inventory account shown at December 31,2016 is:

• A)$2,400.
• B)$12,800.
• C)$61,600.
• D)$28,800.

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Definitions:

Vicarious Learning

Learning that occurs by observing the actions, outcomes, and consequences of others rather than by direct experience.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over others due to satisfaction, trust, or emotional connection.

Classical Conditioning

A training method where a response initially triggered by a second stimulus becomes associated with a first stimulus, following their repeated pairing.

Instrumental Conditioning

A learning process in which behavior is modified by the consequences of the behavior; also known as operant conditioning.