Graphene is worth evaluating for chemical sensing and biosensing due to its outstanding physical and chemical properties. We first report on the fabrication and characterization of gas sensors using a back-gated field-effect transistor platform with chemically reduced graphene oxide (R-GO) as the conducting channel. These sensors exhibited a 360% increase in response when exposed to 100 ppm NO(2) in air, compared with thermally reduced graphene oxide sensors we reported earlier. We then present a new method of signal processing/data interpretation that addresses (i) sensing devices with long recovery periods (such as required for sensing gases with these R-GO sensors) as well as (ii) device-to-device variations. A theoretical analysis is used to illuminate the importance of using the new signal processing method when the sensing device suffers from slow recovery and non-negligible contact resistance. We suggest that the work reported here (including the sensor signal processing method and the inherent simplicity of device fabrication) is a significant step toward the real-world application of graphene-based chemical sensors.