Ww.208. At the beginning of July, CD City has a balance in inventory of $3,100. The following transactions occur during the monthof July.July 3 Purchase CDs on account from Wholesale Music for $2,000, terms 1/10, n/30.July 4Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.July 9July 11July 12Return incorrectly ordered CDs to Wholesale Music and receive credit, $300.Pay Wholesale Music in full.Sell CDs to customers on account, $5,200, that had a cost of $2,700.July 15Receive full payment from customers related to the sale on July 12.July 18Purchase CDs on account from Music Supply for $2,800, terms 1/10, n/30.July 22 Sell CDs to customers for cash, $3,900, that had a cost of $2,200.July 28 Return CDs to Music Supply and receive credit of $240.July 30 Pay Music Supply in full.AccountingRequired: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.

Using perpetual inventory system, the cost of goods sold is recorded with the sales transactions.…

beginning July, ance in inventory of of July. July 3 Purchase CDs on account from Wholesale Music for $2,000, terms 1/10, 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, $300. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,200, that had a cost of $2,700. following ansactions occur during the month July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,800, terms 1/10, n/30. July 22 Sell CDs to customers for cash, $3,900, that had a cost of $2,200. July 28 Return CDs to Music Supply and receive credit of $240. July 30 Pay Music Supply in full. Accounting 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.

beginning July, ance in inventory of of July. July 3 Purchase CDs on account from Wholesale Music for $2,000, terms 1/10, 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, $300. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,200, that had a cost of $2,700. following ansactions occur during the month July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,800, terms 1/10, n/30. July 22 Sell CDs to customers for cash, $3,900, that had a cost of $2,200. July 28 Return CDs to Music Supply and receive credit of $240. July 30 Pay Music Supply in full. Accounting 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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