what is the journal entry for accruals 
the rules for recording accruals are generally the same as the rules for recording other transactions in double entry accounting the specific journal entries will depend on the individual circumstances of each transaction the bottom lineaccruals impact a company s bottom line even though cash has not yet changed hands the accrual method of accounting is the preferred method according to gaap and involves making adjustments for revenue that have been earned but are not yet recorded and expenses that have been incurred but are not yet recorded this is accomplished by adjusting journal entries at the end of the accounting period accruals are important because they help to ensure that a company s financial statements accurately reflect its actual financial condition 