# How to Calculate Gross Receivables

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Every businessman wants to collect all of his receivables accounts. This would mean that every person paid all the debt owed to the business. However, this is not a common occurrence. On a company's balance sheet, the company will normally show its accounts receivable as net receivables. The net receivables is the amount that the company actually believes it will collect. Therefore, using the company's accounts receivable, anyone can calculate gross receivables.

Find the company's net receivables on the balance sheet. Net accounts receivable will be one of the first accounts listed under current assets. For example, a company has \$1,000 of net accounts receivables.

Find the company's allowance for doubtful accounts on the balance sheet. This is a company estimate of the amount of receivables the company cannot collect in the future. This account is normally near net receivables. In the example, a company has an allowance for doubtful accounts as \$50.

Add net receivables to the allowance for doubtful accounts to calculate gross receivables. In the example, \$1,000 plus \$50 equals gross receivables of \$1,050.