Where do you go to cut wood?

on a wood stump, there is one behind the saw mill in Ravenwood.. you need a axe of course

There's an axe on the table behind the lumber mill in Riverwood, you can cut wood at the stump next to the pile of logs and sell the wood to Hod. It's good money if you're just starting the game.

LOL, So the guy wasnt joking when he said: "You want some gold? Go chop some wood and bring me what ya got." ?? Hahah I thought he was being sarcastic.