Net realizable value for damaged or obsolete goods is sales price less the cost of making the sale.

Question

Quizplus · Accepted Answer

Net realizable value is calculated by subtracting the estimated costs of completing and disposing of the goods from the expected selling price. This includes expenses such as shipping costs, handling fees, repair costs, and any other costs that are necessary to make the sale. If the goods are damaged or obsolete, these costs may be higher, which would decrease the net realizable value.

Net Realizable Value for Damaged or Obsolete Goods Is Sales