On 11/1/20, J Co. lent R Co. $35,000. This is a 1-year loan carrying 6% interest. Principle and interest are due on 11/1/21 when the loan matures. What is J Cos 12/31/20 adjusting journal entry related to this note?

Group of answer choices

Debit Interest Receivable $350; credit Interest Revenue $350

Debit Interest Expense $350; credit Interest Payable $350

Debit Cash $350; credit Interest Revenue $350

Debit Interest Expense $2,100; credit Interest Payable $2,100

Debit Interest Receivable $2,100; credit Interest Revenue $2,100

At 12/31 ABC Co. has the following information:

Beginning Inventory $3,500,000 Purchases $1,200,000 Sales $2,500,000 Gross Profit % 35%

What is ABCs cost of goods sold using the gross profit method to estimate cost of goods sold?

Group of answer choices

None of the above.

$875,000

$1,625,000

$3,000,000

$3,825,000