Receivables and Bad Debt already, question, regarding, net

jawz

Hey guys,

Say we are given A/c receivables and Allowance for bad debt as variables for a question regarding the calculation of ratios:

e.g acid ratio/ receivables turnover

Should we net A/c rec and Allowance for bad debts when calculating the ratio? Or is the A/c receivable a/c already netted?

THanks

nitoha

already netted.