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.

IThe following information applies to the questions displayed below.J At the beginning of June. Circuit Country has a balance in inventory of $3.0oo. The following trensactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,700, terms 1M5, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $400. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $5.000, that had a cost of $3.200. June 18 Receive payment on account from customers, $4,000, June 20 Purchase radios on account from Sound Unlimited for $3.800, terms 3/10, n/30. June 23 Sell radios to customers for cash, $5.300, that had a cost of $3,600. June 26 Return damaged radios to Sound Unlimited and receive credit of $500. June 28 Pay Sound Unlimited in full