The gross amount of accounts receivable should be reflected on the statement of financial position;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 or bad debts, not necessarily what the company expects to collect in cash.

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