EXERCISES Exercise 7-1 Sales journal P1 Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Prepare a sales journal like the one in Exhibit 7.5. Journalize the following transactions that should be recorded in the sales journal. May 2 Sold merchandise costing $300 to B. Facer for $450 cash, Invoice No. 5703. 5 Purchased $2,400 of merchandise on credit from Marchant Corp. 7 Sold merchandise costing $800 to J. Dryer for $1,250, terms 2/10, n/30, Invoice No. 5704. 8 Borrowed $9,000 cash by signing a note payable to the bank. Sold merchandise costing $200 to R. Lamb for $340, terms n/30, Invoice No. 5705. Received $1,225 cash from J. Dryer to pay for the purchase of May 7 Sold used store equipment (noninventory) for $900 cash to Golf, Inc. 25 Sold merchandise costing $500 to T. Taylor for $750, tel n/30, Invoice No. 5706. 12 16 19 p. 253