Find a company's accounts receivable listed in the current assets section of its balance sheet. For example, assume a company has $500,000 in accounts receivable.
Find the company's allowance for doubtful accounts or reserve for doubtful accounts listed below accounts receivable in the current assets section of its balance sheet. In the example, assume the company has $30,000 in allowance for doubtful accounts.
Subtract the company's allowance for doubtful accounts from its accounts receivable balance to calculate its net receivables. In the example, subtract $30,000 from $500,000 to get $470,000 in net receivables.