Young Company has a 100% WI in some property in Texas. The property is burdened with a 1/8 royalty. Young produces and sells a total of 130,000 Mcf of gas from the property during July. Of the 130,000 Mcf, 50,000 Mcf of gas is sold to a pipeline for

$10.00/Mcf. Young sells the remaining 80,000 Mcf of gas to the local gas company for $10.00/Mcf. The 80,000 Mcf of gas, which must be transported to the local gas company, will be transported by Isaac Pipeline Company. Transportation charges are

$0.26 per Mcf.

REQUIRED: Ignore severance taxes. Prepare entries to record the sales by Young Company.