Tyler Company operates the Salt Creek Field. 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 2004, Tyler 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, Tyler 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 ABCAYN X Z 100 50 75 100 125 50 50