Although optional, a reversing entry is usually made for adjusting entries that accrue expenses to be paid in the next accounting period.

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Reversing entries are optional accounting procedures which are used to simplify the recording of transactions in the next period. They are typically made for adjusting entries that accrue expenses or revenues that will be recognized in the future, making it easier to match expenses and revenues in the period in which they actually occur.

Although Optional, a Reversing Entry Is Usually Made for Adjusting