The Mercer Company Uses the Cash Basis of Accounting

The Mercer Company uses the cash basis of accounting.Mercer Company made $500, 000 in payments to its suppliers during the year.Mercer's beginning inventory was $20, 000, and its ending inventory was $35, 000.In addition, Mercer had a beginning accounts payable of $50, 000 and an ending accounts payable of $70, 000.What is Mercer's cost of goods sold under the accrual basis of accounting?

A) $465, 000
B) $495, 000
C) $505, 000
D) $535, 000