Oil & Gas
LNG Cargo Sale — Revenue Recognition
Recognizing revenue from the sale of an LNG cargo to an Asian buyer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Trade Receivable (LNG Cargo) | Asset (+) | 45,000,000.00 | - |
| LNG Revenue | Revenue (+) | - | 45,000,000.00 |
| Cost of LNG Sold | Expense (+) | 20,000,000.00 | - |
| LNG Inventory | Asset (-) | - | 20,000,000.00 |
💡 Accountant's Note
LNG cargo sales are recognized when control passes to the buyer — typically at the ship's rail (FOB) or upon delivery (DES). Cargos are often sold under long-term SPAs (Sale and Purchase Agreements) with oil-linked price formulas.
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