Net Realizable Value of Receivables
Definition: Receivables less allowance
Scope:NarrowDifficulty:Moderate
Receivables less allowance
DurationShort-Term
Related Subjects
Foundation
- Allowance MethodThe allowance method produces the NRV reported on the balance sheet
Components
- Accounts ReceivableNRV = gross A/R minus the allowance
- Allowance for Doubtful AccountsThe contra-asset subtracted from gross A/R
Related
- Bad Debt ExpenseBad debt expense affects the allowance which determines NRV
Reported On
- Balance SheetNRV is how receivables appear on the balance sheet
External Links
- Net realizable value — Wikipedia