An oil well cost $1,832,500 and is calculated to hold 200,000 barrels of oil. There is no residual value. Which journal entry is needed to record the expense for the extraction of 40000 barrels of oil during the year? All 40,000 barrels were sold during the year.

A. Depletion Expense- Oil 366500

Oil Revenue 366500

B. Oil Reserve Inventory 366500

Accumulated Depletion- Oil 366500

C. Depletion Expense-Oil 366500

Accumulated Depletion-Oil 366500

D. Cost of Goods Sold-Oil -366500

Accumulated Depletion Oil- 366500