Problem 6-9B (Algo) Record transactions and prepare a partial income statement using a periodic inventory system (LO6-8)

At the beginning of June, Circuit Country has a balance in inventory of $2,200. The following transactions occur during the month of June.

June 2	Purchase radios on account from Radio World for $1,900, terms 1/15, n/45.
June 4	Pay cash for freight charges related to the June 2 purchase from Radio World, $240.
June 8	Return defective radios to Radio World and receive credit, $400.
June 10	Pay Radio World in full.
June 11	Sell radios to customers on account, $3,400, that had a cost of $2,400.
June 18	Receive payment on account from customers, $2,400.
June 20	Purchase radios on account from Sound Unlimited for $3,000, terms 3/10, n/30.
June 23	Sell radios to customers for cash, $4,500, that had a cost of $2,800.
June 26	Return damaged radios to Sound Unlimited and receive credit of $500.
June 28	Pay Sound Unlimited in full.

Required:

1. Assuming that Circuit Country uses a periodic inventory system, record the transactions. 2. Record the month-end adjusting entry to inventory, assuming that a final count reveals ending inventory with a cost of $1,150. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of June.