Hello, Breezy17.
Based on the detailed information you provided, it seems like you're using QuickBooks Online. Then, you've connected PayPal using the bank feeds.
The double entries can be caused by adding a deposit from PayPal, then recording another deposit in QuickBooks Online.
Instead of adding the deposits, you'll have to match it to the existing transaction. Here's how:
- Click Banking, then choose Banking.
- Choose the PayPal account, then look for a deposit.
- Click to open the transaction.
- Choose Find Match.
- Under Show, click the drop-down arrow, then choose Deposits.
- Choose the transaction to match, then click Save.
The Undeposited Funds is the default account that holds the payments against invoices or when you create a sales receipt. You create a deposit from the Undeposited Funds, not create a deposit to it. That's the reason why you get the "Select a bank account for this deposit" error. Yes, it will accept the Uncategorized Income account and the payment will be categorized under it. Though, you can always choose a specific income account for your deposits.
Please let me know if you have further questions, tag me and I'll get back to you.
