Which of the following correctly represents the net accounts receivable calculation?

Net accounts receivable is calculated as the total amount of accounts receivable minus the allowance for doubtful accounts. This calculation provides a more accurate picture of what a company expects to collect from its outstanding receivables.

Accounts receivable represents the money owed to the company by its customers for goods or services provided on credit. However, not all of these receivables are likely to be collected due to factors such as customer defaults or bankruptcies. The allowance for doubtful accounts is an estimate of these uncollectible accounts and is recorded as a contra asset account that reduces the total accounts receivable balance.

By subtracting the allowance for doubtful accounts from accounts receivable, a company presents the net accounts receivable figure, which reflects the expected realizable value of those receivables. This figure is important for providing stakeholders with a realistic assessment of the company's financial position and liquidity.