Question

[The following information applies to the questions displayed below.] At the beginning of July, CD City has a balance in inventory of $3,150. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,050, terms 2/10, 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, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,300, that had a cost of $2,750. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,850, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,950, that had a cost of $2,250. July 28 Return CDs to Music Supply and receive credit of $250. July 30 Pay Music Supply in full. 8.value: 3.00 pointsRequired information 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.) ReferenceseBook & Resources General JournalLearning Objective: 06-02 Understand how cost of goods sold is reported in a multiple-step income statement. Difficulty: 3 HardLearning Objective: 06-05 Record inventory transactions using a perpetual inventory system. Check my work 9.value: 2.00 pointsRequired information 2. Prepare the top section of the multiple-step income statement through gross profit for the month of July.

Answer 1