A) Assuming that CD City uses a periodic inventory system, record the transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

B) Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost of $2,889. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

C). Prepare the top section of the multiple-step income statement through gross profit for the month of July.

The following information applies to the questions displayed below] At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, 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, $5,800, that had a cost of $3,000 July 15 Receive full payment from customers related to the sale on July 12 July 18 Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30 July 22 Sell CDs to customers for cash, $4,200, that had a cost of $2,500 July 28 Return CDs to Music Supply and receive credit of $300. July 30 Pay Music Supply in full