Net realizable value is the fair market value less estimated cost to sell an asset. The inventories are recorded at a lower cost or net realizable value as per financial accounting standards. Account receivables are also recorded at net realizable value after deducting any allowances for doubtful accounts. This is why the balance sheet often shows accounts receivables (net).
In case of a fixed asset like lands with un-useable production facilities can have an associated cost of site restoration. In that case, the net realizable value will be as follows.
Land at Fair value $500,000
Less: Estimated cost of site restoration -$35,000
Net realizable value $465,000
Tatum Company has four products in its inventory. Information about the
As a result of its annual inventory count, Tarweed Corp.
The inventory of Royal Decking consisted of five products. Information about
Decker Company has five products in its inventory. Information about the
Fiedler Co. follows the practice of valuing its inventory at the
Access the FASB Accounting Standards Codification at the FASB website (www
Almaden Hardware Store sells two product categories, tools and paint products
The following transactions were completed by Daws Company during the current fiscal
SLR Corporation has 1,000 units of each of its two
Herman Company has three products in its ending inventory. Specific per
