Net Realizable Value can be defined as:
A) the Gross Accounts Receivable.
B) the Current Bad Debts Expense.
C) the amount of Accounts Receivable you do not expect to collect.
D) the Gross Accounts Receivable minus the Allowance for Doubtful Accounts.

Question

Quizplus · Accepted Answer

Net Realizable Value (NRV) is essentially the amount of money a company expects to collect from its receivables, after accounting for the estimated bad debts. This is calculated by subtracting the Allowance for Doubtful Accounts from the Gross Accounts Receivable.

Net Realizable Value Can Be Defined As