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.

Transcribed Image Text:

Well Production Tubing A 100 B 50 C 75 X 100 Y 125 Z 50