Nugyen Co purchased goods for $3500. While on display, the goods were damaged and it is estimated that they can now only be sold for $2000. Additional marketing and distribution costs are $100. The net realisable value of the goods is:

Question

Quizplus · Accepted Answer

The net realisable value of the goods is the estimated selling price ($2000) minus any costs necessary to make the sale (in this case, $100 for marketing and distribution). Therefore, the net realisable value is $1900 ($2000 - $100).

Nugyen Co Purchased Goods for $3500