what is an accrual reversal entry
The reversing entry typically occurs at the beginning of a reporting period. A reversing entry is commonly used in situations when either revenue or expenses were accrued in the preceding period, and you do not want the accruals to remain in the accounting system for another period.wo further examples of how to use a reversing entry are: 1  Accrued revenue. 2  You accrue $10,000 of revenue in January, because the company has earned the revenue but has not yet billed it to the customer.