inventory system $($LO$6-8)$

At the beginning of July, CD City has a balance in inventory of $$2,400.$ The following transactions occur during the month of

July.

July $3$ Purchase CDs on account from Wholesale Music for $$1,300,$ terms $\frac{1}{10},\frac{n}{30}.$

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 receipt of credit, $$200.$

July $11$ Pay Wholesale Music in full.

July $12$ Sell CDs to customers on account, $$3,800,$ that had a cost of $$2,000.$

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

July $18$ Purchase CDs on account from Music Supply for $$2,100,$ terms $\frac{1}{10},\frac{n}{30}.$

July $22$ Sell CDs to customers for cash, $$3,200,$ that had a cost of $$1,500.$

July $28$ Return CDs to Music Supply and receive credit of $$100.$

July $30$ Pay Music Supply in full.

Required:

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

Record the month$-$end adjusting entry to inventory, assuming that a final count reveals ending inventory with a cost of

$$2,109.$

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