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, $5,300, that had a cost of $2,750. July 15 Receive full payment from customers related to the sale on July 12. Purchase CDs on account from Music Supply for $2,850, terms 2/10, n/30. Sell CDs to customers for cash, $3,950, that had a cost of $2,250. July 28 Return CDs to Music Supply and receive credit of $250. July 30 Pay Music Supply in full. July 18 July 22 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the top section of the multiple-step income statement through gross profit for the month of July. CD CITY Multiple-Step Income Statement (partial) For the Month of July
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, $5,300, that had a cost of $2,750. July 15 Receive full payment from customers related to the sale on July 12. Purchase CDs on account from Music Supply for $2,850, terms 2/10, n/30. Sell CDs to customers for cash, $3,950, that had a cost of $2,250. July 28 Return CDs to Music Supply and receive credit of $250. July 30 Pay Music Supply in full. July 18 July 22 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the top section of the multiple-step income statement through gross profit for the month of July. CD CITY Multiple-Step Income Statement (partial) For the Month of July
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Accounting

Transcribed Image Text: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, $5,300, that had a cost of $2,750.
July 15 Receive full payment from customers related to the sale on July 12.
Purchase CDs on account from Music Supply for $2,850, terms 2/10, n/30.
Sell CDs to customers for cash, $3,950, that had a cost of $2,250.
July 18
July 22
July 28 Return CDs to Music Supply and receive credit of $250.
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.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the top section of the multiple-step income statement through gross profit for the month of July.
CD CITY
Multiple-Step Income Statement (partial)
For the Month of July

Transcribed Image Text:At the beginning of July, CD City has a balance in inventory of $3,150. The following transactions occur during the month of July.
July 3
Purchase CDs on account from Wholesale Music for $2,050, terms 2/10, n/30.
July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $120.
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, $5,300, that had a cost of $2,750.
July 15 Receive full payment from customers related to the sale on July 12.
July 18 Purchase CDs on account from Music Supply for $2,850, terms 2/10, n/30.
July 22 Sell CDs to customers for cash, $3,950, that had a cost of $2,250.
July 28 Return CDs to Music Supply and receive credit of $250.
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Assuming that CD City uses a perpetual inventory system, record the transactions. (If no entry is required for a transaction/event, select
"No Journal Entry Required" in the first account field.)
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