Net realizable value is calculated as ________.
A)net receivables plus sales discounts forfeited
B)gross receivables minus sales discounts taken
C)gross receivables minus sales discounts forfeited
D)gross receivables minus allowance for uncollectible accounts

Question

Quizplus · Accepted Answer

Net realizable value is calculated as the difference between gross receivables and the allowance for uncollectible accounts. This represents an estimate of the amount of receivables that the company expects to collect. Options A, B, and C do not accurately reflect the calculation of net realizable value.

Net Realizable Value Is Calculated as ________