At the beginning of July, CD City has a balance in inventory of $2,500. The following transactions occur during the month of July.

July 3 Purchase CDs on account from Wholesale Music for $1,400, terms 1/10, n/30.

July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $100.

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, $4,000, that had a cost of $2,100.

July 15 Receive full payment from customers related to the sale on July 12.

July 18 Purchase CDs on account from Music Supply for $2,200, terms 1/10, n/30.

July 22 Sell CDs to customers for cash, $3,300, that had a cost of $1,600.

July 28 Return CDs to Music Supply and receive credit of $120.

July 30 Pay Music Supply in full.

prepare the top section of the multiple-step income statement through gross profit for the month of July.

What are net sales, Cost of goods sold, gross profit