Complete question:
amber is in charge of preparing an annual budget for her company. as part of the budgeting process, she must estimate COGS and ending inventory. which of the following statements is correct regarding the use of the gross profit method
amber must take a physical inventory to determine ending inventory and COGS
amber may utilize the gross profit method, but must also take a physical inventory
amber may utilize the gross profit method to estimate ending inventory and COGS
Answer:
Amber may utilize the gross profit method to estimate ending inventory and COGS
Explanation:
The gross profit method is a strategy used to measure the value at the end of the product. The method may be used with monthly accounting statements where a physical warehouse is not feasible.
(However, it is not a substitution for an actual physical inventory.) It is often used to measure the volume of lost products incurred by burglary, accident or other disasters.
For example, if a business buys products of $80 and sells them for $100, the gross profit is $20.
Mate, I don’t think anyone is gonna write a whole essay
As per the given case, the amount that is added to GDP is $350.
<h3>What do you mean by GDP?</h3>
GDP refers to the measure of all final goods and services that have been bought by the final user produced in the country.
As per the given case, Farmer smith bought seed and fertilizer for $100. He grew wheat that he sold to the wander bread company. Consumers bought the bread from the grocery for $350. Therefore, it was added to the GDP.
So, $350 was added to the GDP.
Learn more about GDP here:
brainly.com/question/15682765
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Answer:
January 31
Interest expense 3750(Dr.)
Notes payable 1321.33(Dr.)
Cash 5071.33(Cr.)
Explanation:
Purchase price = $610,000
Down payment = $110,000
Borrowing = $500,000
Period = 15 years
Rate = 9%
Installment Payment per month = $5,071.33
With first payment due on January 31, 2020;
Mortgage amount or carrying value = $500,000
Interest = 0.09 × (1/12) × 500,000 = $3,750
Monthly payment = $5,071.33
Decrease in carrying value or mortgage amount = $5071.33 - $3750 = $1321.33
January 31
Interest expense 3750(Dr.)
Notes payable 1321.33(Dr.)
Cash 5071.33(Cr.)
