What are the pros and cons of using reversing entries?

What type of transactions may require reversing entries?

What are the pros and cons of using reversing entries?

What type of transactions may require reversing entries?
A pro is that it prevents overstating revenues/expenses in the next accounting period.

The entry is the exact opposite of the adjusting entry.

2007
12/31 adjustment Salaries Expense $300
Salaries Payable $300
(Accrued 3 day's wages)

12/31 closing Income Summary $300
Salaries Expense $300

2008
01/01 reversing Salaries Payable $300
Salaries Expense $300

01/02 Salaries Expense $500
Cash $500
(paid 4 day's wages)