Answer required 1-12:
Record return of incorrectly ordered CDs to Wholesale Music and receive credit, $200. Note: Enter debits before credits. Record receipt of full payment from customers related to the sale on July 12 . Note: Enter debits before credits. At the beginning of July, CD City has a balance in inventory of $3,150. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,050, terms 2/10,n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $120. 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, $5,300, that had a cost of $2,750. July 15 Receive full payment from customers related to the sale on July 12 . July 18 Purchase CDs on account from Music Supply for $2,850, terms 2/10,n/30. July 22 Sell CDs to customers for cash, $3,950, that had a cost of $2,250. July 28 Return CDs to Music Supply and receive credit of $250. July 30 Pay Music Supply in full. July 3 Purchase CDs on account from Wholesale Music for $2,050, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, \$120. 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, $5,300, that had a cost of $2,750. July 15 Receive full payment from customers related to the sale on July 12 . July 18 Purchase CDs on account from Music Supply for $2,850, terms 2/10,n/30. July 22 sell CDs to customers for cash, $3,950, that had a cost of $2,250. July 28 Return CDs to Music Supply and receive credit of $250. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City uses a perpetual inventory system, record the transactions. 2. Prepare the top section of the multiple-step income statement through gross profit for the month of July. Sell CDs to customers on account, $5,300, that had a cost of $2,750. Record the sale of inventory on account. Note: Enter debits before credits. Record purchase of CDs on account from Music Supply for $2,850, terms 2/10, n/30. Note: Enter debits before credits. Record purchase of CDs on account from Wholesale Music for $2,050, terms 2/10,n/30. Note: Enter debits before credits. Record return of CDs to Music Supply and receive credit of $250. Note: Enter debits before credits. Sell CDs to customers on account, $5,300, that had a cost of $2,750. Record the cost of inventory sold. Note: Enter debits before credits. Record payment of cash for freight charges related to the July 3 purchase from Wholesale Music, \$120. Note: Enter debits before credits. Sell CDs to customers for cash, $3,950, that had a cost of $2,250. Record the cost of inventory sold. Note: Enter debits before credits. Record payment to Wholesale Music in full. Note: Enter debits before credits
