How do I calculate Net Realizable Value?

yohope123

New member
I know it's Accounts Receivable - Allowance for Bad Debt, but does it take into account sales discounts and returns? For example, if
A/R = $200
Sales discount = $50
Sales Return = $25
Account for Bad Debt = $10,
would the net realizable value be 200-50-25-10 = 115?
 
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