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Join nowHello, 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:
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.