Please dhow step by step for question 3 and 4

PROBLEM #3:

Erickson Company had a $400 credit balance in Allowance for Doubtful Accounts at December 31, 2012, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:

Estimated Percentage

Uncollectible

Current Accounts $170,000 1%

130 days past due 15,000 3%

3160 days past due 12,000 6%

6190 days past due 5,000 12%

Over 90 days past due 9,000 30%

Total Accounts Receivable $211,000

Instructions

(a) Prepare the adjusting entry on December 31, 2012, to recognize bad debts expense.

(b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $400 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts.

PROBLEM #4:

Great Plains Supply Co. has the following transactions related to notes receivable during the last 2 months of the year.

Nov. 1 Loaned $90,000 cash to B. Benson on a 1-year, 8% note.

Dec. 11 Sold goods to Roswell, Inc., receiving a $9,000, 90-day, 7% note.

16 Received a $20,000, 6-month, 9% note to settle an open account from M. Ling.

31 Accrued interest revenue on all notes receivable.

Instructions

Journalize the transactions for Great Plains Supply Co.