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operating expenses. cost of goods sold plus operating expenses. Question 19 Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account? Freight-In Inventory Freight Expense Freight-Out Question 20 Financial information is presented below: Operating expenses $ 25000 Sales revenue 175000 Cost of goods sold 125000 The profit margin ratio would be Question 21 Financial information is presented below: Operating expenses $ 31000 Sales returns and allowances 6000 Sales discounts 5000 Sales revenue 180000 Cost of goods sold 87000