Final answer:
The journal entry to record the depletion of timberlands includes a debit to Timber Depletion Expense and a credit to Accumulated Depletion-Timberlands or Timberlands directly. Depletion allocates the cost of natural resources over their useful lives and matches the cost with revenue generated.
Step-by-step explanation:
The journal entry to record Pulpit, Inc.'s depletion of its timberlands for the accounting period typically includes a debit to Timber Depletion Expense and a credit to Accumulated Depletion-Timberlands or Timberlands directly. Depletion is the allocation of the cost of natural resources over their useful life. This accounting treatment reflects the using up of natural resources, such as timber, mineral deposits, oil reserves, etc., and recognizes it as an expense.
As the resources are harvested and sold, the depletion expense is recognized in the income statement, thereby matching the cost of the consumed resource with the revenue it generates.
- Debit: Timber Depletion Expense
- Credit: Accumulated Depletion-Timberlands or Timberlands