Question

Net realizable value of receivables is gross receivables minus multiple choice provision for credit losses and estimated returns and allowances. provision for credit losses and sales returns. proven credit losses and estimated returns and allowances. estimated provision for credit losses and estimated returns and allowances.

Answer 1

Net realizable value (NRV) of receivables is the gross receivables minus returns & allowances and the provision of credit losses.

Option A is the correct answer.

What are receivables?

Receivables are the amount that is earned by the company from the debtors concerning the credit sales after a certain period of time.

Net receivable value (NRV) is the amount that is being realized after disposing of the asset. It is computed by deducting the provision of credit losses, that is, the bad debt charges, the return on sales, and the allowances, that is, discounts on sales from the gross amount of accounts receivables.

Therefore, the amount of sales returns, sales discounts, and provision of credit losses are get deducted from the gross receivables while computing the NRV.

Learn more about the NRV in the related link:

brainly.com/question/15293843

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