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 receipt of 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.

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 $$2,889.$

$3.$ Prepare the top section of the multiple$-$step income statement through gross profit for the month of July.