Which of the following entries could not be a legitimate reversing entry?
A)Debit Wages Payable and credit Wages Expense
B)Debit Fees Earned and credit Accounts Receivable
C)Debit Interest Payable and credit Interest Expense
D)Debit Interest Receivable and credit Interest Income

Question

Quizplus · Accepted Answer

Interest Receivable is an asset account, and Interest Income is a revenue account. Reversing entries are used to reverse accruals and deferrals, which involve adjusting entries that affect both an asset/liability account and a revenue/expense account. Therefore, Interest Receivable and Interest Income cannot be reversed using a reversing entry.

Which of the Following Entries Could Not Be a Legitimate