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Problem 6-9A (Algo) Record transactions and prepare a partial income statement using a periodi 1 Record purchase of CDs on account from Wholesale Music inventory system (LO6-8) for $1,450, terms 2/10,n/30. At the beginning of July, CD City has a balance in inventory of $2,550. The following transactions occur during the month of July 3 Purchase cDs on account from Wholesale Music for $1,450, 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 receipt of credit, $400. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $4,100, that had a cost of $2,150. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,250, terms 2/10,n/30. July 22 Sell CDs to customers for cash, $3,350, that had a cost of $1,650. July 28 Return CDs to Music Supply and receive credit of $130. July 30 Pay Music Supply in full. July 3 Purchase CDs on account from Wholesale Music for $1,450, 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 receipt of credit, $400. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $4,100, that had a cost of $2,150. July 15 Receive full payment from customers related to the sale on July 12 . July 18 Purchase CDs on account from Music Supply for $2,250, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,350, that had a cost of $1,650. July 28 Return CDs to Music Supply and receive credit of $130. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City 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 $2,0 3. Prepare the top section of the multiple-step income statement through gross profit for the month of July. Record the month-end adjusting entry. Note: Enter debits before credits. 2 Record payment of cash for freight charges related to the July 3 purchase from Wholesale Music, $120. 3 Record return of incorrectly ordered CDs to Wholesale Music and receipt of credit, $400. 4 Record payment to Wholesale Music in full. 5 Sell CDs to customers on account, $4,100, that had a cost of $2,150. Record the sale of inventory on account. 6 Sell CDs to customers on account, $4,100, that had a cost of $2,150. Record the cost of inventory sold. 7 Record receipt of full payment from customers related to the sale on July 12. 8 Record purchase of CDs onaccount from Music Supply for $2,250, terms 2/10,n/30. 9 Sell CDs to customers for cash, $3,350, that had a cost of $1,650. Record the sale of inventory for cash. 10 Sell CDs to customers for cash, $3,350, that had a cost of $1,650. Record the cost of inventory sold. 11 Record return of CDs to Music Supply and receive credit of $130. 12 Record payment of Music Supply in full

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