Daughter lying

Sky
My seven year old has started lying at first we tried ignoring it but now every little thing she tries lying about. Example one the the girls underwear was on the bathroom. I ask if they would pick it up and she said it wasn't hers and started crying. I didn't yell or anything for them to be picked up I looked at the size and they were hers. I asked why she lied instead of picking them up and she just kept saying she didn't do it. But before that at breakfast the girls got their own cereal and when I woke the coffee table was against the couch when I asked she told me they weren't eating on the couch. which I knew was I lye but I tried the ignoring. But now it has every thing she says had a small lie in it. Another example she was fighting with her sister my youngest started crying Sade pulled my hair and when I asked sadie she told me jordy pulled her hair first than she pulled jordy when I asked jordy she told me she didn't touch Sadie after Sadie sat in time out for three mins she told me jordy hair was in her hair and she pulled it to move. My question is should I keep putting her in time out or ignoring it? Please help I'm at a loss.