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, 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: 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) View transaction list Journal entry worksheet 1 2 3 45678 12 Record purchase of CDs on account from Wholesale Music for $1,600, terms 1/10, n/30. Note: Enter debits before credits. Date July 03 General Journal Debit Credit