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 The company borrowed $43,750 cash by signing a note payable to USA Bank. May 5 Paid salary of $6,800 to J. Terry by issuing check number 543. May 7 The company paid Fielder Company $2,200 cash for the merchandise purchased on April 21. May 8 Purchased $3,120 of merchandise on credit from Delfino Corporation terms n/30. May 12 Purchased $830 of store supplies from Bryce Company on credit terms n/45. May 16 Sold used office equipment (noninventory) for $3,402 cash to DeRozan Corporation. May 19 The owner contributed $8,890 cash to the company. May 25 Sold merchandise costing $7,900 to Gilbert for $9,500 on credit subject to a $290 sales discount if paid within 90 days.