Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

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Action Oil and Gas Corporation operates the Flat Hill Basin. Along with oil, this field
produces large quantities of saltwater. The saltwater is highly corrosive, and as a result,
the downhole production equipment is subject to frequent replacement. During the first
half of 2014, Action must replace the tubulars in wells A, B, and C. Wells X, Y, and Z
(newly drilled wells) are in the process of being completed.
During April, Action receives a shipment containing 500 joints of production tubing.
The invoice totals $500,000 plus $3,000 for transportation and hauling. The production
tubing is installed in the following wells: Record the purchase and installation of the production tubing.