Net accounts receivable is calculated as:

Question

Quizplus · Accepted Answer

Net accounts receivable is calculated by subtracting the allowance for uncollectible accounts from accounts receivable. This provides the amount the company expects to collect from its customers. Option A is incorrect because it only takes into account the sales returns and allowances, and not the actual accounts receivable. Option B is incorrect because it only subtracts bad debt expense and not the allowance for uncollectible accounts. Option D is incorrect because it adds the allowance for uncollectible accounts to accounts receivable, which would overstate the amount the company expects to collect.

Net Accounts Receivable Is Calculated As