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Unformatted text preview: of Market value = Net Realizable Value (NRV) Lower limit (Floor) of Market value = Net Realizable Value (NRV) - Normal Profit Margin Net Realizable Value (NRV) = Estimated Selling Price - Cost of Completion and Disposal Items to be included in inventories Goods in transit FOB destination --> Seller's Inventory FOB shipping point --> Buyer's Inventory Consigned goods are consignor's inventory Goods sold by installment sales are not included in seller's inventory. Profit on installment sales is recognized in proportion to cash collected....
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This note was uploaded on 06/22/2009 for the course ACCOUNTING 3 taught by Professor Kaas during the Spring '09 term at CUNY Brooklyn.
- Spring '09