Restaurant
Reversal of Prior Month Accrual
Reversing the utility accrual at the start of the new month to avoid double-counting when the actual bill arrives.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accrued Liabilities | Liability (-) | 680.00 | - |
| Utilities Expense | Expense (-) | - | 680.00 |
💡 Accountant's Note
Reversing entries are made on the first day of a new period so that when the actual vendor invoice arrives, the net expense recorded is correct with no double counting.
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