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The diagram below shows a set of budget lines facing a household. FIGURE 6-8
-Refer to Figure 6-8.The movement of the budget line from ab to db could be caused by
Net Realizable Value
The estimated selling price of goods or assets in the course of normal business, minus any costs associated with the sale or completion.
Gross Receivables
The total amount of money owed to a company by its customers before deducting any allowance for doubtful accounts.
Bad Debt Expense
An expense reported on a company's income statement, representing the estimated amount of accounts receivable that will not be collected.
Sales Returns
Goods returned to the seller by the customer post-purchase due to defects or dissatisfaction, affecting the seller's revenue.
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