Oil & Gas
Crude Oil Quality Adjustment — Price Differential
Recording a price discount on heavy, high-sulphur crude relative to the Brent benchmark.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Crude Sale — Net) | Asset (+) | 4,850,000.00 | - |
| Oil Revenue (Benchmark) | Revenue (+) | - | 5,000,000.00 |
| Quality / Grade Differential Discount | Revenue (-) | 150,000.00 | - |
💡 Accountant's Note
Crude oil prices are quoted relative to benchmark crudes (Brent, WTI, Dubai). Heavy or sour crudes trade at a discount that is contractually defined. The differential is presented as a reduction to revenue.
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