Net accounts receivable is:
A)gross accounts receivable minus cost of goods sold.
B)also known as net pre-tax income.
C)gross accounts receivable minus allowance for doubtful accounts.
D)also known as net after-tax income.

Question

Quizplus · Accepted Answer

Net accounts receivable is calculated by subtracting the amount of allowance for doubtful accounts from gross accounts receivable. This represents the amount of accounts receivable that the company expects to collect. Option A refers to the calculation of gross profit, not net accounts receivable. Options B and D refer to net income, not net accounts receivable.

Net Accounts Receivable Is