ch 6

At the beginning of July. CD City has a balance In inventory of $2,900. The following transactions occur during the month of July, July: 3 Purchase cos on account fron hholesale Music for $1,880, terns 2/10,n/30, July 4 Pay cash for treight charges. related to the July 3 purchise from hholesale Music, 5109. july 9 Return incorrectiy ordered cos to hholesale Music and recelve credit, 5300 . July 11 Pay wholesale Music in full. July 12 Se11 cos to customers on account, 54, 8ee, that had a cost of 52,500. july 15 Receive tull payment fron custoeers related to the sale on July 12 . guly is purchase cos on account fron Music Supply for $2,6e8, terns 1/18,n/38. July 22 sell cos to customers tor cash, \$3,780, that had a cost of $2,800. July 28 Return cos to Music Supply and recelve credit of 3200 . July 30 Pay Musio Supply in full. Required: 1. Assuming that CD City uses a perpetual inventory system, record the transactions. 2. Prepare the top section of the muluple-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 Joumal Entry Requined" in the first account field.) Journal entry worksheet 34567812 Record purchase of CDs on account from Wholesale Music for $1,800, terms 2/10,n/30. Note: inter debites befare eredite. 1 Record purchase of CDs on account from Wholesale Music for $1,800, terms 2/10,n/30. 2 Record payment of cash for freight charges related to the July 3 purchase from Wholesale Music, $100. 3 Record return of incorrectly ordered CDs to Wholesale Music and receive credit, $300. 4 Record payment to Wholesale Music in full. 5 Sell CDs to customers on account, $4,800, that had, a cost of $2,500. Record the sale of inventory on account, 6 Sell CDs to customers on account, $4,800, that had a cost of $2,500. Record the cost of inventory sold. 7. Record receipt of full payment from customers related to the sale on July 12 , 8 Record purchase of CDs on account from Music Supply for $2,600, terms 1/10,n/30. 9 Sell CDs to customers for cash, $3,700, that had a cost of $2,000. Record the sale of inventory for cash. 10 Sell CDs to customers for cash, $3,700, that had a cost of $2,000. Record the cost of inventory sold, 11 Record return of CDs to Music Supply and receive credit of $200. Record payment to Music Supply in full. Prepare the top section of the multiple-step income statement through gross profit for the month of July