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

Exercise 16

Bulldog Oil Corporation, the operator of Lease A, purchased casing with a list price
of $60,000 for a joint interest property in which it has a 40% WI. The casing is to be
used in a workover. The vendor gives a discount of 10% off list price and also has credit
terms of 2/10, n/30 (i.e., a 2% discount can be taken if paid in 10 days, otherwise the
full amount of the invoice less any returns or allowances is due in 30 days). Loading,
hauling, and unloading costs amounted to $4,000. Prepare the entry to record
the purchase.