Reversing entries are a type of accounting transaction used to correct errors or prepare for the next accounting period. This process involves the reversal of an existing journal entry, usually at the beginning of the next accounting period. The purpose of reversing entries is to ensure that the correct accounting information is reported in the financial statements. This is done by reversing the original journal entry and recording a new journal entry that is the opposite of the original entry. For example, if an expense was recorded in the wrong period, the reversing entry would reverse the original entry and record the expense in the correct period. Reversing entries are an important part of the accounting process and help to ensure accuracy in the financial statements.