Items purchased for resale with a right of return are valued at the lower of cost and net realizable value (NRV), as are regular inventories.

Question

Quizplus · Accepted Answer

This statement is true as per generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS). Inventories, including those purchased for resale with a right of return, are valued at the lower of cost and NRV.

Items Purchased for Resale with a Right of Return Are