At the beginning of June, Circuit Country has a balance in inventory of $2,000. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $1,700, terms 1/15, n/45. June 4 Pay freight charges related to the June 2 purchase from Radio World, $200. June 8 Return defective radios to Radio World and receive credit, $300. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,000, that had a cost of $2,200. June 18 Receive payment on account from customers, $2,000. June 20 Purchase radios on account from Sound Unlimited for $2,800, terms 3/10, n/30. June 23 Sell radios to customers for cash, $4,300, that had a cost of $2,600. June 26 Return damaged radios to Sound Unlimited and receive credit of $300. June 28 Pay Sound Unlimited in full.

Required:

1.

Assuming that Circuit Country 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.)

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