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Accounts Receivable
3 Months Ended
Mar. 31, 2023
Credit Loss [Abstract]  
Accounts Receivable

Note 3. Accounts Receivable

 

Accounts receivable primarily relates to sales to trade accounts receivable of customers for crude oil and natural gas liquid products. Accounts receivable is presented as amounts due from customers less an estimated allowance for doubtful accounts. An allowance for doubtful accounts, if deemed necessary by management, is based on a review of all outstanding amounts by customer on a monthly basis. Management determines the allowance for doubtful accounts, if any, by identifying troubled accounts and by using historical experience applied to an aging of accounts, as well as the current and projected financial condition of the specific customer. As of March 31, 2023 and December 31, 2022 no allowance for doubtful accounts was deemed necessary. Trade accounts receivable are zero interest bearing. Trade accounts receivable of $1,381,436 are with a vendor of which our CEO is a beneficiary.