Required Information [The following Information applies to the questions displayed below.] At the beginning of July, CD City has a balance In Inventory of $2,500. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,400, terms 1/10, 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, $4,000, that had a cost of $2,100. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,200, terms 1/10, n/30. July 22 Sell CDs to customers for cash, $3,300, that had a cost of $1,600. July 28 Return CDs to Music Supply and receive credit of $120. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City 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.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 July 03 Inventory 1,400 Accounts Payable | | 2 July 04 Inventory Cash 3 July 09 Accounts Payable Inventory 1,400 100 100 200 200 4 July 11 Accounts Payable 1,200 Inventory Cash 5 July 12 Accounts Receivable 4,000 Sales Revenue 4,000 6 July 12 Cost of Goods Sold 2,100 Inventory 2,100 7 July 15 Cash 4,000 Accounts Receivable 4,000 8 July 18 Inventory Accounts Payable 2,200 2,200 9 July 22 Cash Sales Revenue 3,300 3,300 10 July 22 Cost of Goods Sold 1,600 Inventory 1,600 11 July 28 Accounts Payable Inventory 12 July 30 Accounts Payable Cash 120 120 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