Little Company Uses the Cash Basis of Accounting

question 39

Multiple Choice

Little Company uses the cash basis of accounting. Little Company made $28,000 in payments to its suppliers during the year. Little's beginning inventory was $2,000, and its ending inventory was $1,000. In addition, Little had a beginning accounts payable of $7,000 and an ending accounts payable balance of $4,000. What is Little's cost of goods sold under the accrual basis of accounting?

• A) $26,000
• B) $30,000
• C) $32,000
• D) $37,000

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