Net accounts receivable is calculated as:

Question

Quizplus · Accepted Answer

Net accounts receivable is calculated by subtracting the allowance for uncollectible accounts from the total accounts receivable balance. Option A is incorrect because bad debt expense is not subtracted from accounts receivable to determine net accounts receivable. Option B is incorrect because allowance for uncollectible accounts is already included in accounts receivable balance and should be deducted to get net accounts receivable. Option C is incorrect because it calculates net sales, not net accounts receivable.

Net Accounts Receivable Is Calculated As