Please show and explain the work for the two incorrect answers. What numbers do I need to use and why do I use them?

Required information [The following information applies to the questions displayed below. At the beginning of July, CD City has a balance in inventory of $3,050. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,950, terms 2/10, n/30 July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $100 July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,100, that had a cost of $2,650 July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,750, terms 2/10, n/30 July 22 sell CDs to customers for cash, $3,850, that had a cost of $2,150 July 28 Return CDs to Music Supply and receive credit of $230 July 30 Pay Music Supply in full 3. Prepare the top section of the multiple-step income statement through gross profit for the month of July. Answer is complete but not entirely correct. CD CITY Multiple-step Income Statement (partial) For the month of July s8,950 Net sales Cost of goods sold: Beginning inventory 3,050 100 Add: Freight-in Add: Purchases 4,700 35 Less: Purchase discounts 430 Less: Purchase returns Cost of goods available for sale 2,485 Less: Ending inventory 2,485 4,800 Cost of goods sold 4,150 Gross profit