Your Best Advisors, a service company, uses reversing entries

On March 31, 2016, they journalized and posted the following adjusting entry to accrue Utilities Expense:

Utilities Expense 400
Utilities Payable 400

Which of the following entries is the correct reversing entry to be prepared on April 1, 2016?

A)
Utilities Payable 400
Utilities Expense 400

B)
Utilities Expense 400
Income Summary 400

C)
Cash 400
Utilities Expense 400

D)
Utilities Expense 400
Accounts Receivable 400

A

Business

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Indicate whether the statement is true or false.

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