If a natural resource is extracted and not sold,we:
A)debit Depletion Expense and credit Accumulated Depletion.
B)debit Cost of Goods Sold and credit Inventory.
C)debit Accumulated Depletion and credit Natural Resource.
D)debit Inventory and credit Natural Resource.

Question

Quizplus · Accepted Answer

If a natural resource is extracted but not sold, it would be considered a decrease in inventory since the resource was removed from the company's possession. Therefore, the best choice would be to debit Inventory and credit Natural Resource.

If a Natural Resource Is Extracted and Not Sold,we