In a JV, when one company has an interest in an oil or gas asset with other producers in properties from which natural gas is produced, the entitlements method is often used to account for any imbalances. Imbalances occur when a company sells more or less product than they are entitled to under their ownership percentage. Revenue is recognized only on the entitlement percentage of volumes sold. Any amount that is sodl in excess of the entitlement is treated as a liability and is not recognized as revenue. Any amount of entitlement in excess of the amount sold is recognized as revenue and a receivable is accrued.