Computers$-$For$-$You is a retailer specializing in selling computers and related equipment. During $2022,$ Computers$-$For$-$You sells

$200,000$ of merchandise to Sandcastles, Inc. Computers$-$For$-$You incurs $24,000$ of freight costs associated with these sales. Which

of the following is true regarding how this $24,000$ is treated on the financial statements?

Computers$-$For$-$You will report the $24,000$ as part of operating expenses on the income statement.

Sandcastles, Inc. will report the $24,000$ as part of merchandise inventory on the statement of financial position.

Sandcastles, Inc. will report the $24,000$ as an accounts receivable on the statement of financial position.

Computers$-$For$-$You will report the $24,000$ as part of merchandise inventory on the statement of financial position.