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Angeloil Co. is the operating owner, who is responsible for collecting and paying for severance taxes on oil production. When Angeloil Co. sells the oil

Angeloil Co. is the operating owner, who is responsible for collecting and paying for severance taxes on oil production. When Angeloil Co. sells the oil to purchasers, it should:

A.debit production tax expense.

B.debit production tax payable.

C.credit accounts receivable.

D.debit royalty payable.

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