a-company-uses-the-inventory-method-for-recording-depletion-what-entry-is-made-w

Question

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

Accepted Answer

Debit Oil Inventory; Credit Accumulated Depletion

Answer

Debit Depletion Expense; Credit Accumulated Depletion

Answer

Debit Cash; Credit Oil Inventory

Answer

Debit Accumulated Depletion; Credit Oil Inventory