Problem 6-3A Record transactions and prepare a partial income statement using a perpetual inventory system

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At the beginning of July, CD City has a balance in inventory of $2,750. The following transactions occur during the month of July.

July 3	Purchase CDs on account from Wholesale Music for $1,650, terms 2/10, n/30.
July 4	Pay 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, $4,500, that had a cost of $2,350.
July 15	Receive full payment from customers related to the sale on July 12.
July 18	Purchase CDs on account from Music Supply for $2,450, terms 2/10, n/30.
July 22	Sell CDs to customers for cash, $3,550, that had a cost of $1,850.
July 28	Return CDs to Music Supply and receive credit of $170.
July 30	Pay Music Supply in full.