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Required information Problem 8-3A 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 $3,250. The following transactions occur during the month of July July 3 Purchase CDs on account from Wholesale Music for $2,15e, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $300. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,500, that had a cost of $2,85e. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2.950, terms 2/10, n/38. July 22 Sell CDs to customers for cash, $4,65e, that had a cost of $2,350. July 28 Return CDs to Music Supply and receive credit of $278. July 3e Pay Music Supply in full. 2,85 y for the sale on No Date General Journal Credit Debit 2.150 1 July 03 Inventory Accounts Payable 2,150 July 04 110 Inventory Cash 110 3 July 09 300 Accounts Payable Inventory 300 4 July 11 1,850 Accounts Payable Cash Sales Discounts 1,832 18 5 July 12 5.500 Accounts Receivable Sales Revenue 5,500 0 July 12 2.850 Cost of Goods Sold Inventory 2.850 July 15 5,500 Cash Accounts Receivable 5.500 July 18 2,950 Inventory Accounts Payable 2,950 July 22 4.030 Cash Sales Revenue 4.050 - 10 July 22 Cost of Goods Sold Inventory 2.350 1 2 ,350 July 28 270 Accounts Payable Inventory 270 July 30 2.8801 Accounts Payable Cash 2.880l 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 Gross Profit