What Is Net Realizable Value? How Is Net Realizable Value

question 20

Essay

What is net realizable value? How is net realizable value affected when a receivable is written off under the allowance method?

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Definitions:

Median

A measure of central tendency that identifies the middle value in a dataset when the numbers are arranged in ascending or descending order.

Central Tendency

A measure that represents the center point or typical value of a dataset.

Average

A statistical measure that determines the central tendency of a set of numbers by dividing the sum of all numbers by the count of the numbers.

Outliers

Those scores in a distribution that are noticeably much more extreme than the majority of scores. Whether a score is an outlier or not is usually an arbitrary decision made by the researcher.