Atkinson Technical Resources' balance sheet reported the following on December 31, 2014:

Accounts Receivable: $375

Allowance For Doubtful Accounts: ($49)

ATR uses the percent-of-sales and aging approaches to account for uncollectible receivables.

Requirement 1: How much of the December 31, 2014, balance of Accounts Receivable did ATR expect to collect? Stated differently, what was the net realizable value of ATR's receivables? $________million

Requirement 2: Journalize, without explanations, 2015 entries for ATR. (debits first, then credits. Enter amounts in millions.)

A. Estimated doubtful-account expense of $20 million, based on the percent-of-sales method, all during the year.

B. Write-offs ofuncollectible accounts receivable totaling $44 million. Prepare a T-account for Allowance for Doubtful Accounts and post to this account. Show its unadjusted balance at December 31, 2015. Begin by preparing the journal entry.

C. December 31,2015, aging of receivables, which indicates that $43 million of the total receivables of $351 million is uncollectible at year-end. Post to Allowance for Doubtful Accounts, and show its adjusted balance at December 31, 2015. Begin by preparing the journal entry.

Now post to Allowance for Doubtful Accounts, and show its adjusted balance at December 31, 2015. (Begin by entering the unadjusted balance from B above, then complete a T-account.)

Requirement 3: Show how ATR's receivables and the related allowance will appear on December31, 2015, balance sheet.

Atkinson Technical Resources

Balance Sheet (partial)

December 31, 2015

In Millions of $

________________________ _______

Less:____________________ ________

________________________ _______

Requirement 4: Show what ATR's income statement will report for the transactions detailed.

Atkinson Company

Income Statement (partial)

Year Ended December 31, 2015

(In millions of $)

____________________

_____________________________ ______