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At the beginning of July, CD City has a balance in inventory of $3,200. The following transactions occur during the month of July. July 3

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At the beginning of July, CD City has a balance in inventory of $3,200. The following transactions occur during the month of July. July 3 Purchase cos on account fron wholesale Music for $2,160, terns 1/10,n/30. July 4 Pay cash for freight charges related to the July 3 purchase from uholesale Music, \$1e0. July 9 Return incorrectly ordered CDs to Wholesale Husic and receive credit, \$200. July 11 Pay tholesale Husic in ful1. July 12 sell cos to custoners on account, $5,400, that had a cast of $2,300. auly 15 Recelve full payment from customers related to the sole on July 12 . July 18 Purchase cos on account from Music Supply for 52,900 , teras 1/10,n/30. July 225el1cos to customers for cash, $4,000, that had a cost of 82,300 . July 28 Return CDS to Husic supply and recelve credit of $260. 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

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