At the beginning of July, CD City has a balance in inventory of $$2,850.$ The following transactions occur during the month of July.

July $3$ Purchase CDs on account from Wholesale Music for $$1,750,$ terms $\frac{2}{10},\frac{n}{30}.$

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, $$4,700,$ that had a cost of $$2,450.$

July $15$ Receive full payment from customers related to the sale on July $12.$

July $18$ Purchase CDs on account from Music Supply for $$2,550,$ terms $\frac{2}{10},\frac{n}{30}.$

July $22$ Sell CDs to customers for cash, $$3,650,$ that had a cost of $$1,950.$

July $28$ Return CDs to Music Supply and receive credit of $$190.$

July $30$ Pay Music Supply in full.

Required:

Assuming that CD City uses a perpetual inventory system, record the transactions.

Prepare the top section of the multiple$-$step income statement through gross profit for the month of July.

Complete this question by entering your answers in the tabs below.

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.$)$