At the beginning of July, CD City has a balance in inventory of $2,400. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,300, terms 1/10,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 receipt of credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $3,800, that had a cost of $2,000. July 15 Receive full payment from customers related to the sale on July 12 . July 18 Purchase CDs on account from Music Supply for $2,100, terms 1/10,n/30. July 22 Sell CDs to customers for cash, $3,200, that had a cost of $1,500. July 28 Return CDs to Music Supply and receive credit of $100. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City uses a periodic inventory system, record the transactions. 2. Record the month-end adjusting entry to inventory, assuming that a final count reveals ending inventory with a cost of $2,109. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of July. Complete this question by entering your answers in the tabs below. Record purchase of CDs on account from Wholesale Music for $1,300, terms 1/10,n/30. 2 Record payment of cash for freight charges related to the July 3 purchase from Wholesale Music, $120. 3 Record return of incorrectly ordered CDs to Wholesale Music and receipt of credit, $200. 4 Record payment to Wholesale Music in full. 5 Sell CDs to customers on account, $3,800, that had a cost of $2,000. Record the sale of inventory on account. 6 Sell CDs to customers on account, $3,800, that had a cost of $2,000. Record the cost of inventory sold. 7 Record receipt of full payment from customers related to the sale on July 12 . 8 Record purchase of CDs onaccount from Music Supply for $2,100, terms 1/10,n/30. 9 Sell CDs to customers for cash, $3,200, that had a cost of $1,500. Record the sale of inventory for cash. 10 Sell CDs to customers for cash, $3,200, that had a cost of $1,500. Record the cost of inventory sold. 11 Record return of CDs to Music Supply and receive credit of $100. 12 Record payment of Music Supply in full