Exercise 7-4 Identifying Journal of entry LO P1, P2, P3, P4 Ali Co. 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. Journal Date Transaction Nov. 4 Purchased $7,900 of merchandise on credit from Auto Corp, terms 1/30 5 Borrowed $9,500 cash by signing a note payable to the James Madison credit union 6 Paid salary of $8,800 to D. Gooden by issuing check no. 932. 7 The company purchased $15,650 of merchandise on credit from O'Neil Co, terms n/10. 17 The company paid O'Neil Co. $15,650 cash for the merchandise purchased on November 7 22 The owner contributed $28. 120 cash to the company. Sold merchandise costing $9,350 to M. Plumlee for $10,850 on credit, terms 2/15, 1/45, invoice no 24 2334 27 Sold merchandise costing 5680 to S. Hawes for $800 cash, invoice no. 2891