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 $$2,950.$ The following transactions occur during the month of July.

July $3$ Purchase CDs on account from Wholesale Music for $$1,850,$ terms $2/10,$ n$/30.$

July $4$ Pay cash for freight charges related to the July $3$ purchase from Wholesale Music, $$110.$

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, $$4,900,$ that had a cost of $$2,550.$

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

July $18$ Purchase CDs on account from Music Supply for $$2,650,$ terms $2/10,$ n$/30.$

July $22$ Sell CDs to customers for cash, $$3,750,$ that had a cost of $$2,050.$

July $28$ Return CDs to Music Supply and receive credit of $$210.$

July $30$ Pay Music Supply in full.

Required:

$1.$ Assuming that CD City uses a perpetual inventory system, record the transactions.

$2.$ Prepare the top section of the multiple$-$step income statement through gross profit for the month of July.