Problem 6-3A (Algo) Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) At the beginning of July, CD City has a balance in inventory of $3,350. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,250, 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, $5,700, that had a cost of $2,950. July 15 Receive full payment from customers related to the sale on July 12 . July 18 Purchase CDs on account from Music supply for $3,050, terms 2/10,n/30. July 22 Sell CDs to customers for cash, $4,150, that had a cost of $2,450. July 28 Return CDs to Music Supply and receive credit of $290. July 30 Pay Music Supply in full. July 3 Purchase CDs on account from Wholesale Music for $2,250, 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, $5,700, that had a cost of $2,950. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $3,050, terms 2/10,n/30. July 22 Sell CDs to customers for cash, $4,150, that had a cost of $2,450. July 28 Return CDs to Music Supply and receive credit of $290. 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. 1 Record purchase of CDs on account from Wholesale Music for $2,250, 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, $200. 4 Record payment to Wholesale Music in full. 5 Sell CDs to customers on account, $5,700, that had a cost of $2,950. Record the sale of inventory on account. 6 Sell CDs to customers on account, $5,700, that had a cost of $2,950. 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 $3,050, terms 2/10,n/30. 9 Sell CDs to customers for cash, $4,150, that had a cost of $2,450. Record the sale of inventory for cash. 10 Sell CDs to customers for cash, $4,150, that had a cost of $2,450. Record the cost of inventory sold. 11 Record return of CDs to Music Supply and receive credit of $290. 12 Record payment to Music Supply in full