Net Realizable Value Definition | Becker
Accounting Dictionary
Net Realizable Value
- The estimated selling price in the ordinary course of business less the reasonably predictable cost of completion and disposal. (Accounts Receivable) the balance of the accounts receivable account less the allowance for uncollectible accounts.
- (of Inventory) The net realizable value of inventory is the net selling price less the costs to complete and dispose of the inventory.