Answer:
Gross profit = $ 3950.
Explanation:
1.
July-3. Dr Merchandise Inventory   1750
                    Cr Accounts payable    1750
   ( To record purchase of inventory on account)
July-4. Dr Merchandise Inventory   120
                                               Cr Cash   120
   ( To record payment of freight charges)
July-9 Dr Accounts payable  400
                  Cr Merchandise Inventory   400
    ( To record return of inventory)
July-11 Dr Accounts payable  1750
                         Cr Cash                  1750
  ( To record payment from wholesale music in full)
July-12.a) Dr Cost of goods sold 2450
                          Cr  Merchandise inventory   2450
           b)  Dr Account receivable  4700
                          Cr   Sales revenue       4700
     (To record sales of goods to a customer)
July-15. Dr Cash  4700
                       Cr  Account receivable  4700
       ( To record receipt from sale of goods)
July-18 Dr Merchandise inventory 2550
                       Cr Accounts payable           2550
        (To record purchase of inventory on account)
July-22.a) Dr  Cost of goods sold  1950
                                  Cr merchandise inventory   1950
                  Dr Account receivable   3650
                                  Cr sales revenue     3650
            (To record sales of goods on account)
July-28 Dr Accounts payable 190
                   Cr Merchandise inventory   190
       (To record purchase return)
    
July-30. Dr Accounts payable  2550
                      Cr Cash                        2550
        (To record paid in full).
2.                                              Income statement
 
Sales (4700+3650)                                                                         = 8350
Less: Cost of goods sold (2450+1950)                                          =(<u>4400</u>)
                                Gross profit                                                         3950