Ogden Company Uses Its Accounts Payable Account Only for Inventory

question 25

Multiple Choice

Ogden Company uses its accounts payable account only for inventory purchases.The following account balances were reported on its financial statements: $$\begin{array} { | l | c | c | } \hline { \text { Accounts } } & \text { December 31, 2018 } & \text { December 31, 2017 } \\\hline \begin{array} { l } \text { Merchandise } \\\text { inventory }\end{array} & \$ 70,000 & \$ 66,000 \\\hline \text { Accounts payable } & 68,000 & 65,000 \\\hline \text { Cost of goods sold } & 889,000 & 856,000 \\\hline\end{array}$$ How much cash did Ogden Company pay to suppliers during 2018?

• A)$887,000
• B)$890,000
• C)$896,000
• D)$34,000

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