Exercise 7-9 (Algo) Entries in general journal LO P1, P2, P3, P4 Smith Auto uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. July 3 The company purchased $4,000 of merchandise on credit from Advanced Parts, terms n/60. July 6 The company sold $1,050 of merchandise for cash (cost is $900) to O'Reilly. July 7 The owner, A. Smith, contributed equipment worth $6,800 to the company. July 9 The company sold $1,200 of used equipment (non inventory) on credit to Junk Yard, terms n/30. July 13 The company sold $5,000 of merchandise (cost is $4,600) on credit to J. Bell, terms n/30. July 15 The company granted J. Bell an allowance (price reduction) of $680 for merchandise purchased on July 13. Smith Auto credited accounts receivable for that amount. July 22 The company purchased a building for $38,000 by issuing a note payable. July 26 The company paid salaries of $5,300 with cash. 1. Journalize its transactions that should be recorded in the general journal. 2. Identify the journal where each of the following transactions should be recorded.