Net accounts receivable are ________.

Question

Quizplus · Accepted Answer

Net accounts receivable are the amount of accounts receivable that is expected to be collected, and is calculated by subtracting the allowance for uncollectible accounts from the total accounts receivable. Choice A includes the allowance for uncollectible accounts in the net accounts receivable calculation, which is incorrect. Choice C subtracts bad debts expense from accounts receivable, which is incorrect because bad debts expense is an expense account and does not affect the balance of accounts receivable. Choice D is also incorrect because it calculates sales minus bad debts expense, which is unrelated to the calculation of net accounts receivable.

Net Accounts Receivable Are ________