Required information (The following information applies to the questions displayed below.) At the beginning of July, CD City has a balance in inventory of $3,000. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,900, terms 1/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $120. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $400. July 11 Pay Wholesale Music in full. July 12 Sell cds to customers on account, $5,000, that had a cost of $2,600. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,700, terms 1/10, n/30. July 22 Sell CDs to customers for cash, $3,800, that had a cost of $2,100. July 28 Return CDs to Music Supply and receive credit of $220. July 30 Pay Music Supply in full. 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