A company uses the inventory method for recording depletion. What entry is made when oil is extracted but not yet sold?

• A. Debit Depletion Expense; Credit Accumulated Depletion
• B. Debit Oil Inventory; Credit Accumulated Depletion
• C. Debit Cash; Credit Oil Inventory
• D. Debit Accumulated Depletion; Credit Oil Inventory

Answer: (B)