Oil & Gas
Crude Oil Sale — Revenue at Market Price
Recording the sale of crude oil cargo at the prevailing market price.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Trade Receivable (Oil Sale) | Asset (+) | 15,000,000.00 | - |
| Oil Revenue (Sales) | Revenue (+) | - | 15,000,000.00 |
| Cost of Oil Sold (Inventory Transfer) | Expense (+) | 5,000,000.00 | - |
| Crude Oil Inventory | Asset (-) | - | 5,000,000.00 |
💡 Accountant's Note
Revenue is recognized when control of the crude cargo passes to the buyer — typically at the point of loading (FOB) or delivery. The significant margin between production cost and market price is the upstream business model.
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