A reversing entry will include either a debit to a revenue account or a credit to an expense account.

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A reversing entry is made at the beginning of a new accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period. This often involves debiting a revenue account if the previous adjustment increased revenue, or crediting an expense account if the previous adjustment increased expenses, to reset the balances for the new period.

A Reversing Entry Will Include Either a Debit to a Revenue