Ebert Oil Company sold 1,000 Mcf of gas at ($3.00/Mcf.) The lease provides a 1/5 RI. The

Question:

Ebert Oil Company sold 1,000 Mcf of gas at $$3.00/Mcf.$ The lease provides a 1/5 RI. The WI owner receives 100 percent of the revenues (net of 5% severance tax) and then distributes the amount due to the RI owner. Give the entry by Ebert to record the sale of the gas.

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