While general ledger expense accounts are typically debited and have debit balances, there are times when the expense accounts are credited.

Some instances when general ledger expense accounts are credited include:

• the end-of-year closing entries


• the reversing entry for a previous accrual adjusting entry involving an expense


• an adjusting entry to defer part of a prepayment that was debited to an expense account


• a correcting entry to reclassify an amount from the incorrect expense account to the correct account

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