Better Advice,a service company,uses reversing entries.On March 31,they posted the following adjusting entry to accrue utility expenses: $$\begin{array} { | l | r | r | }
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts payable } & & 650 \
\hline
\end{array}$$ Which of the following represents the proper reversing entry to be posted on April 1?
A) $$\begin{array} { | l | r | r | }
\hline \text { Accounts payable } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts payable } & & 650 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts receivable } & & 650 \
\hline
\end{array}$$

Question

Better Advice,a service company,uses reversing entries.On March 31,they posted the following adjusting entry to accrue utility expenses: $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts payable } & & 650 \
\hline
\end{array}$$ Which of the following represents the proper reversing entry to be posted on April 1?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts payable } & & 650 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts receivable } & & 650 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Reversing entries are made at the beginning of the new accounting period to reverse or cancel out adjusting entries made at the end of the previous period. The correct reversing entry for the accrual of utility expenses would debit Accounts Payable and credit Utility Expense, effectively reversing the original adjusting entry.

Better Advice,a Service Company,uses Reversing Entries Utility expense 650 Accounts payable 650\begin{array} { | l | r | r | } \hline \text { Utility expense } & 650 & \\\hline \text { Accounts payable } & & 650 \\\hline\end{array} Utility expense Accounts payable ​650​650​​

Better Advice,a Service Company,uses Reversing Entries $\begin{array} { | l | r | r | } \hline \text { Utility expense } & 650 & \\\hline \text { Accounts payable } & & 650 \\\hline\end{array}$