02 Required information [The following information applies to the questions displayed below.) At the beginning of July, CD City has a balance in inventory of $2,750. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,650, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110. July 9 Return incorrectly ordered CDs to wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $4,500, that had a cost of $2,350. July 15 Receive full payment from customers related to the sale on July 12.1 July 18 Purchase CDs on account from Music Supply for $2,450, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,550, that had a cost of $1,850. July 28 Return CDs to Music Supply and receive credit of $170. July 30 Pay Music Supply in full. 2. Prepare the top section of the multiple-step income statement through gross profit for the month of July CD CITY Multiple-step Income Statement (partial) For the month of July Net Sales $ 1,650 Accounts Payable 1,650