How much is the “gross amount”? If this information is not shown on the Balance Sheet, you should be able to find it in the notes that follow the financial statements.

This discussion question has two parts.

    • Find the Accounts Receivable (may also be called Trade Receivables) for your selected company. How much is the “net amount”? This is the amount after deducting the Allowance for Uncollected Accounts (this can have some other names).
    • How much is the “gross amount”? If this information is not shown on the Balance Sheet, you should be able to find it in the notes that follow the financial statements. Do you think the Allowance for Uncollected Accounts is a reasonable estimate of the uncollected accounts? Why?