could you explain the proccess of calculating it

ep Save 2. Required information Problem 6-3A Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) (The following information applies to the questions displayed below.) At the beginning of July, CD City has a balance in inventory of $2,650. The following transactions occur during the month of July July 3 Purchase CDs on account from Wholesale Music for $1,550, terns 2/10, 1/30. July 4 Pay cash for freight charges related to the July 3 purchase fron Wholesale Music, $100. July 9 Return incorrectly ordered cos to Wholesale Music and receive credit, $300. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $4,300, that had a cost of $2,250. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,350, terns 2/10, 1/30. July 22 Sell CDs to customers for cash, $3,450, that had a cost of $1,750. July 28 Return CDs to Music Supply and receive credit of $150. July 30 Pay Music Supply in full. Problem 6-3A Part 2 Problem 6-3A Part 2 2. Prepare the top section of the multiple-step income statement through gross profit for the month of July. CD CITY Multiple-step Income Statement (partial) For the month of July Net Sales Cost of Goods Sold Retained Eamings