Question - 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?