Advanced
Reversal of Prior Month Accrual
Clearing out a month-end estimate at the beginning of the next period to avoid double counting.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accrued Liabilities | Liability (-) | 500.00 | - |
| Utilities Expense | Expense (-) | - | 500.00 |
💡 Accountant's Note
Reversing entries are used at the start of a new month so that when the 'actual' bill arrives and is recorded, the net effect on expenses is correct.
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