Speedo Paint Company completed the following selected transactions:

Requirement 

Record the transactions in the journal of Speedo Paint Company. Explanations are not required.

Using ratio data to evaluate a company's financial position

Transcribed Image Text:

2007 Dec. 1 2008 31 31 Mar. 1 July 21 Sold inventory to Brent Estes, receiving a $16,000, three- month, 12% note. Ignore cost of goods sold. Made an adjusting entry to accrue interest on the Estes note. Made an adjusting entry to record uncollectible-account expense based on an aging of accounts receivable. The aging schedule shows that $12,800 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Uncollectible Accounts is $11,100. Collected the maturity value of the Estes note. Sold merchandise to Ann Mellon, receiving a 60-day, 9% note for $22,000. Ignore cost of goods sold. Sep. 19 Mellon dishonored her note (failed to pay) at maturity; we converted the maturity value of the note to an account receivable. Nov. 21 Loaned $40,000 cash to Air Control Co., receiving a 90- day, 9% note. Dec. 2 Collected in full on account from Ann Mellon. 31 Accrued the interest on the Air Control note.