At the beginning of July, CD City has a balance in inventory of $3,250. The following transactions occur during the month of July.

July		3		Purchase CDs on account from Wholesale Music for $2,150, terms 2/10, 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, $300.
July		11		Pay Wholesale Music in full.
July		12		Sell CDs to customers on account, $5,500, that had a cost of $2,850.
July		15		Receive full payment from customers related to the sale on July 12.
July		18		Purchase CDs on account from Music Supply for $2,950, terms 2/10, n/30.
July		22		Sell CDs to customers for cash, $4,050, that had a cost of $2,350.
July		28		Return CDs to Music Supply and receive credit of $270.
July		30		Pay Music Supply in full.

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

Cd City

Multiply step income statement partial

For the month of july