The gross amount of accounts receivable should be reflected on the balance sheet; this is what the company expects to collect in cash.

Question

Quizplus · Accepted Answer

The gross amount of accounts receivable is the total amount owed by customers before any deductions for allowances for doubtful accounts, which reflects the expected uncollectible portion. The net amount, after these deductions, is what the company expects to collect in cash and is reported on the balance sheet.

The Gross Amount of Accounts Receivable Should Be Reflected on the Balance