Problem $6-3$A $($Algo$)$ Record transactions and prepare a partial income statement using a perpetual inventory system $($LO$6-2,6-5)$

At the beginning of July, CD City has a balance in inventory of $$3,350.$ The following transactions occur during the month of July.

July $3$ Purchase CDs on account from Wholesale Music for $$2,250,$ terms $\frac{2}{10},\frac{n}{30}.$

July $4$ Pay cash for freight charges related to the July $3$ purchase from Wholesale Music, $$100.$

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, $$5,700,$ that had a cost of $$2,950.$

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

July $18$ Purchase CDs on account from Music Supply for $$3,050,$ terms $\frac{2}{10},\frac{n}{30}.$

July $22$ Sell CDs to customers for cash, $$4,150,$ that had a cost of $$2,450.$

July $28$ Return CDs to Music Supply and receive credit of $$290.$

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.