The method of estimating inventory that uses records of the ...

[mynx]

The method of estimating inventory that uses records of the selling prices of the merchandise is called
 a. retail method
  b. gross profit method
  c. inventory turnover method
  d. average cost method

Question 2

Sure Enuf, Inc. paid 4,800 on May 1, 2012 for 12 months' insurance coverage starting May 1. How much insurance expense should appear on the company's income statement for the year ended December 31, 2012?
 
  A) 4,800
  B) 2,800
  C) 3,200
  D) 0. Insurance expense does not appear on the income statement.

[cadimas]

Answer to Question 1

a

Answer to Question 2

C