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realizable value

realizable value ECON

realizable value ECON

realizable value ECON

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It is simpler than the allowance method in that it allows for one simple entry to reduce accounts receivable to its net realizable value. en.wikipedia.org

Net realizable value is generally equal to the selling price of the inventory goods less the selling costs (completion and disposal). en.wikipedia.org

When goods are damaged or obsolete, and can only be sold for below purchase prices, they should be recorded at net realizable value. en.wikipedia.org

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