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. Date Transaction Journal Nov. 1 Purchased $3,180 of store supplies from Pitt Company on credit, terms n/60. 3 Sold merchandise costing $4,200 to J. Spruce for $5,350 cash. 4 Purchased $7,670 of merchandise on credit from Sanders Corp, terms n/30. 11 Sold merchandise costing $2,842 to L. Ersan for $3,340 on credit, terms n/30, invoice no. 6721. 17 Paid salaries of $5,850 in cash. 20 Sold merchandise costing $4,850 to Hope for $6,000 on credit subject to a $150 sales discount if paid by the end of next month. 24 Issued check no. 231 to Davis Corp. to buy office supplies for $630. 27 Purchased merchandise for $8,420 on credit from Kidd, terms 2/10, n/45. Purchases journal Sales journal Cash receipts journal Cash receipts journal Cash receipts journal Cash receipts journal Cash payments journal