Net Receivables

Net Receivables

A measure of accounts receivable that a company expects to actually be paid. Accounts receivable is money that a customer owes a company for a good or service purchased on credit. One calculates net receivables by taking the accounts receivable and subtracting bad debt and expressing the result as a percentage of the total accounts receivable. For example, if a company's accounts receivable is $100,000 and it has $10,000 in bad debt, the net receivables is 90%.