REVERSING ENTRIES

TYPE 1 1) _______journal__ 2) ____Accrued revenue_____ 3)_______Matching

TYPE 1 1. original entry 2. taken directly to a revenue account before revenue is earned 3. before the revenue was earned

A reversing entry is an optional journal entry that is recorded at the beginning of an accounting period to undo the prior period's adjusting entries To remove certain adjusting entries

1) aid the accounting process 2) most computer systems allow for reversing entries 3) other info: reversing entries are not required

TYPE 2 ACCRUALS

examples: 1) salaries expense 10,000 salaries payable 10,000 2) interest receivable 40,000 interest revenue 40,000

what is a reversing entry?are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous accounting period

type of adjusting entry that can be reversed