At the beginning of July, CD City has a balance in inventory of $$2,700.$ The following transactions occur during the month of July.

July $3$ Purchase CDs on account from Wholesale Music for $$1,600,$ 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 receive credit, $$400.$

July $11$ Pay Wholesale Music in full.

July $12$ Sell CDs to customers on account, $$4,400,$ that had a cost of $$2,300.$

July $15$ Receive full payment from customers related to the sale on July $12.$

July $18$ Purchase CDs on account from Music Supply for $$2,400,$ terms $1/10,\frac{n}{30}.$

July $22$ Sell CDs to customers for cash, $$3,500,$ that had a cost of $$1,800.$

July $28$ Return CDs to Music Supply and receive credit of $$160.$

July $30$ Pay Music Supply in full.

Required:

Assuming that CD City uses a perpetual inventory system, record the transactions.

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.

Assuming that CD City uses a perpetual inventory system, record the transactions. $($If no entry is required for a transaction$/$event$,$ select

$"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

Record purchase of CDs on account from Wholesale Music for $$1,600,$ terms

$\frac{1}{10},\frac{n}{30}.$

Note: Enter debits before credits.