Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. this should be recorded in the cash receipts journal.

May 1	C. Li, the owner, contributed $12,400 cash to the company.
May 7	The company purchased $8,400 of merchandise on credit from Gomez, terms n/30.
May 9	The company sold merchandise costing $1,250 to E. James for $1,350 on credit, terms n/10.
May 15	The company borrowed $9,500 cash by signing a note payable to the bank.
May 18	The company received $1,350 cash from E. James in payment of the May 9 purchase.
May 24	The company sold merchandise costing $1,000 to B. Cox for $1,050 cash.