In valuing damaged merchandise for inventory purposes,net realizable value is the estimated selling price less any direct cost of disposition.

Question

Quizplus · Accepted Answer

Net realizable value is calculated as the estimated selling price minus any direct costs associated with selling the merchandise, such as repairs or shipping fees. This means that it takes into account the realistic amount the damaged merchandise can be sold for, rather than simply its original cost.

In Valuing Damaged Merchandise for Inventory Purposes,net Realizable Value Is