file>transfer purchased items is gone from menu

When i am backing up my son's iphone 4 itunes warns that there are purchased items. I used to able to go to file and transfer purchesd items from phone to itunes then sync. His phone needs replacement so I am backing it up and will restore to a 4s iphone. Does he just need to redownload them from icloud after I activate new phone? I was hoping for the old file>transfer purchaes option. Thanks for your advice