What Is a Net Receivable?
Accounts receivable are unreceivables due to the sale of goods and provision of labor services by an enterprise. The provision for bad debts is due to time, reputation and other reasons. The company estimates that the receivables will not be collected. And the net value of accounts receivable = accounts receivable-bad debt provision.
Net accounts receivable
Right!
- Accounts receivable are unreceivables due to the sale of goods and provision of labor services by an enterprise. The provision for bad debts is due to time, reputation and other reasons. The company estimates that the receivables will not be collected. And the net value of accounts receivable = accounts receivable-bad debt provision.
- Accounting term.
- Net accounts receivable = accounts receivable-bad debt provision
- Note: This provision for bad debts is only part of the company's estimated non-recovery, not the actual bad debt losses.
- more specific:
- Net accounts receivable = total accounts receivable-ending balance of bad debt reserve