To calculate net accounts receivable, you need: total accounts receivable, allowance for doubtful accounts, and sales returns and allowances. The percentage of sales method estimates bad debt expense based on credit sales.Calculate the current days sales outstanding (DSO) using the formula , substituting Accounts Receivable as 10000. Formula: Net Accounts Receivable = Gross Accounts Receivable – Allowances for Doubtful Debts. Variables Involved in the Formula:some text. The AgingofReceivables Method helps us calculate the ending balance in the Allowance for Doubtful Accounts. We have been provided t… View the full answer. A company's net receivables are the total amount of money its customers owe minus what the company estimates will likely never be paid. To calculate the net credit sales, subtract the sales returns and sales allowances from the sales you've made on credit. 4. Tax receivable (net of allowance for doubtful accounts of.