Exercise 7-2 (Algo) Identifying journal of entry LO P1, P2, P3, P4 Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Identify the journal in which each of the transactions should be recorded. Date Transaction May 2 Sold merchandise costing $800 to J. Dryer for $1,250, terms 2/10, n/30, invoice number 57041 May 5 The company borrowed $43,750 cash by signing a note payable to USA Bank May 7 Issued check number 890 to Walters Corporation to buy office supplies for $1,950 May 8 Paid salary of $6,800 to J. Terry by issuing check number 5431 May 12 Purchased $6,000 of merchandise on credit from Liggins terms n/15 May 16 Received $1,225 cash from J. Dryer to pay for the purchase of May 7 May 19 Sold used store equipment (noninventory) for $900 cash to Golf, Incorporated May 25 The company paid wages of $5,650 in cash Journal