Ali co uses a sales journal a purchases journal a cash


Ali Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November. 

Nov. 3 The company purchased $ 3,200 of merchandise on credit from Hart Co., terms n/20. 

7 The company sold merchandise costing $ 840 on credit to J. Than for $ 1,000, subject to an $ 20 sales discount if paid by the end of the month. 

9 The company borrowed $ 3,750 cash by signing a note payable to the bank. 

13 J. Ali, the owner, contributed $ 5,000 cash to the company. 

18 The company sold merchandise costing $ 250 to B. Cox for $ 330 cash. 

22 The company paid Hart Co. $ 3,200 cash for the merchandise purchased on November 3. 

27 The company received $ 980 cash from J. Than in payment of the November 7 purchase. 

30 The company paid salaries of $ 1,650 in cash. 

Prepare headings for a cash receipts journal like the one in Exhibit 7.7. Journalize the November transactions that should be recorded in the cash receipts journal.

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Accounting Basics: Ali co uses a sales journal a purchases journal a cash
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