net (noun, net, \ net \) accounts (noun, ac-counts, \ əˈkaʊnts \) receivable (adjective, re-ceiv-a-ble, \ rɪˈsiːvəbl \)
Definition: is an amount of money that a firm can reasonably expect to amass from accounts receivable by checking their asset accounts and comparing them to the credit balance sheet. The said amount can be calculated by using the formula: “accounts receivable” – “allowance for doubtful debts,” as the correlation between these two figures allows the organization to understand how much of the accounts receivable funds can be cashed in by the end of the current fiscal period.
In a Sentence:
- The last two months of the fiscal year have turned into a race, as we strived to have a sufficient sum of net accounts receivable so we could compensate the expenditures we had this year.
- How were you hired as an accountant if you don’t even know how to calculate net accounts receivable so that we could find out how much money we made?
- After carefully examining the credit balance for any bad debts, Larry Smith was finally able to present the firm’s net accounts receivable figures to his manager.
Synonyms and related words: credit balance, debit, assets account, accounts receivable
