Return to question Part 1 of 3 Required information [The following information applies to the questions displayed below.) At the beginning of July, CD City has a balance in inventory of $3,300. The following transactions occur during the month of July. points July 3 Purchase CDs on account from Wholesale Music for $2,200, terms 1/10, n/30. tu.. 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, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,600, that had a cost of $2,900. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $3,000, terms 1/10, n/30. July 22 Sell CDs to customers for cash, $4,100, that had a cost of $2,400. July 28 Return CDs to Music Supply and receive credit of $280. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City uses a periodic inventory system, record the transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) Credit Date July 03 Debit 2,200 2,200 July 04 120 July 09 200 200 July 11 2,000 1.980 July 12 5,600 5,600 General Journal Purchases Accounts Payable Freight-In Cash Accounts Payable Purchase Returns Accounts Payable ($2,200 - $200) Purchase Discounts ($2,000 * 1%) Cash Accounts Receivable Sales Revenue No Journal Entry Required Cash Accounts Receivable Purchases Accounts Payable Cash Sales Revenue No Journal Entry Required Accounts Payable Purchase Returns Accounts Payable ($3,000 - $280) Cash July 12 July 15 5,600 5,600 July 18 3,000 3,000 July 22 4,100 4,100 July 22 July 28 280 July 30 2,720 2,720 Return to question - $120. 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, $5,600, that had a cost of $2,900. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Musie Supply for $3,000, terms 1/10, 1/30. July 22 Sell CDs to customers for cash, $4,100, that had a cost of $2,400. July 28 Return CDs to Music Supply and receive credit of $280. July 30 Pay Music Supply in full. Part 2 of 3 points 2. Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost of $2.820. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) Answer is not complete. No Date General Journal Dobie Credit July 31 Inventory (ending) Cost of Goods Sold Purchase Returns Purchase Discounts Purchases Freight-in Inventory (beginning) OOOOOOO Checkr July 28 Return CDs to Music Supply and receive credit of $280. July 30 Pay Music Supply in full. Part 3 of 3 3. Prepare the top section of the multiple-step income statement through gross profit for the month of July. points eBook CD CITY Multiple-step Income Statement (partial) For the month of July Net sales Cost of goods sold: Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts References | Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit
