Oil & Gas
Crude Blending Revenue
Earning a premium by blending heavy and light crude streams to produce a marketable blend grade.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Trade Receivable (Blend Sale) | Asset (+) | 12,500,000.00 | - |
| Blended Crude Revenue | Revenue (+) | - | 12,500,000.00 |
| Cost of Blend Components (COGS) | Expense (+) | 11,800,000.00 | - |
| Crude Inventory (Components) | Asset (-) | - | 11,800,000.00 |
💡 Accountant's Note
Blending adds value by creating a product grade with broader market appeal. The blending margin (revenue less component costs) is the economic benefit. This is a common practice for companies managing multiple reservoir qualities.
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