Account Receivables can be an important asset on the Balance Sheet, especially for a company that sells a lot on credit. Our client just started credit sales this year! What is the appropriate way to report the Account Receivable total on the Balance Sheet in the Financial Statement? At the “gross” amount OR at the “net amount after some allowance for doubtful accounts?” Why? What is the accounting entry to record the “allowance for doubtful accounts?”

Answer rating: 100% (QA)

The appropriate way to report Accounts Receivable on the Balance Sheet in the Financial Statements is at the net amount after considering an allowance View the full answer