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Are accounts receivable and net receivables the same? Im trying to find the average collection period, but?

April 26, 2017Accounts receivable average Business collection corporations Finance NET period receivables

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Are accounts receivable and net receivables the same? Im trying to find the average collection period, but?

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Net receivables is accounts receivable minus allowance for doubtful accounts. However in practical terms, when calculating average collection period, you just pluck the figures off the comparative balance sheet, which means you use the net receivables figure. See also the notes at the link.