Account Receivable

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Account Receivable

3. ACCOUNTS RECEIVABLE

	December 31,
	2019			2018
Trade	$	129,000		$	118,000
Accrued receivable		2,826,000			2,512,000
Qualified Intermediary		250,000			—
		3,205,000			2,630,000
Less: Allowance for losses		(15,000	)		(15,000	)
	$	3,190,000		$	2,615,000

Receivable from Qualified Intermediary is funds on deposit related to sale proceeds for which the Company is pursuing treatment under IRC Section 1031-Like Kind Exchange. These funds are released as the 180 day replacement period expires.

Accrued receivables are receivables from purchasers of oil and gas. These revenues are booked from check stub detail after receipt of the check for sales of oil and natural gas products. These payments are for sales of oil and natural gas produced in the reporting period, but for which payment has not yet been received until after the closing date of the reporting period. Therefore these sales are accrued as receivables as of the balance sheet date. Revenues for oil and natural gas production that has been sold but for which payment has not yet been received is accrued in the period sold.