3. Clay Company completed the following transaction in 2018 June 1 Sold Merchandise to Papi Company receiving a S 12,000, 5%, 9 month Aug 3 Issued a 60 day, 6%, S25,000 note for cash to Farrell Company Oet2 Farrell Company dishonored its note. Clay Company converted the Nov1 Sold Merchandise Inventory to Pedey Company receiving a S15,000, note. (lgnore Cost of Goods Sold) note to an Accounts Receivable. 4%, 90 day note. (Ignore Cost of Goods Sold) Dec 7 Collected in full from Farrell Company Dec 31 Accrue interest on the Pedey Company note. Dec 31 Estimated Bad Debts $270 Required: Journalize above entries for Clay Company