Super Buy specializes in selling large$-$screen televisions and home theatre sound systems. All of its inventory purchases are shipped FOB shipping point. Under which category of its multiple$-$step income statement would you expect to see the shipping costs paid by Super Buy for their inventory purchases?

$$ Within the Other Revenues and Expenses section.

$$ As part of Operating Expenses, specifically Freight Out.

Those costs would not appear on the Income Statment because they are part of the cost of Inventory.

$$ As a separate line item in the Cost of Goods Sold section.