1:Caine Company has sales revenue of $74,000, cost of goods sold of $42,000 and operating expenses of $17,000 for the year ended December 31. Caines gross profit is

Select one:

a. $59,000.

b. $0.

c. $15,000.

d. $32,000.

2: Under the perpetual Inventory system, Cash Freight costs incurred by the buyer for the transportation of goods is recorded in which account?

Select one:

a. Freight-Out.

b. Inventory.

c. Delivery Expense.

d. Freight-In.