E7-7 Inara Serra Co. uses special journals and a general journal. The following transactions occurred during May 2012. May 1 1. Serra invested $50,000 cash in the business. 2 Sold merchandise to Morena Co. for $6,300 cash. The cost of the merchandise sold was $4.200. 3. Purchased merchandise for $7.200 from J. DeLeon using check no. 101. 14 Paid salary to H. Potter $700 by issuing check no. 102. 16 Sold merchandise on account to K. Kimbell for $900, terms n/30. The cost of the mer- chandise sold was $630. 22 A check of $9,000 is received from M. Baccarin in full for invoice 101; no discount given. Instructions (a) Prepare a multiple-column cash receipts journal (see Illustration 7-9) and a multiple-column cash payments journal (see Illustration 7-16). (Use page 1 for each journal.) (b) Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal