The net amount a company expects to collects on Accounts Receivable is equal to ________.
A) gross Accounts Receivable
B) Allowance for Doubtful Accounts
C) gross Accounts Receivable minus Allowance for Doubtful Accounts
D) gross Accounts Receivable plus Allowance for Doubtful Accounts

Question

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The net amount a company expects to collect on Accounts Receivable is equal to gross Accounts Receivable minus Allowance for Doubtful Accounts. Gross Accounts Receivable represents the total amount of money that customers owe to the company. Allowance for Doubtful Accounts is the estimated amount of Accounts Receivable that the company is unlikely to collect. Therefore, the net amount that the company expects to collect is the difference between these two figures.

The Net Amount a Company Expects to Collects on Accounts