The percentage of sales method estimates bad debt expense based on credit sales. To calculate net accounts receivable, you need: total accounts receivable, allowance for doubtful accounts, and sales returns and allowances.The formula for AR turnover ratio looks like this: Accounts Receivable Turnover Ratio = Net Credit Sales ÷ Average Accounts Receivable. This ratio basically measures how many times on average in a given period and entity collect cash from its data. The amount of business income and deductions apportioned to. In this training this is what I'll be showing you how to analyze account receivables or adapters in Excel. The amount of business income and deductions apportioned to. Bad debts are a fact of life when doing business on credit. Loans Receivable (net of uncollectibles). -. 4,188,345. -. -.