net realizable value (NRV) definition

In the context of inventory, net realizable value or NRV is the expected selling price in the ordinary course of business minus the costs of completion, disposal, and transportation.

In the context of accounts receivable it is the amount of accounts receivable that is expected to be collected. This should be the debit balance in Accounts Receivable minus the credit balance in Allowance for Doubtful Accounts.

You could think of NRV as the cash realizable value.