Reversing Entries

Many companies do not use reversing entries, but when they do, they are doing them with the intent to make things easy for subsequent, related journal entries.

A few things to remember if a company uses reversing entries:

1. Typically all accrual adjusting entries are reversed.
2. Only deferral adjusting entries that include a debit to an expense or a credit to a revenue in the original entry are reversed.
3. Reversing entries are completed so that the subsequent journal entry is easier for the bookkeeper/accountant.

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Click here to access the
Reversing Entry Google Spreadsheet
and follow along!

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It looks like you’ve mastered this lesson. Good work!