Hello there, FineCarp.

Thanks for joining this thread. Allow me to share some insights on how to clear old transactions from your accounts in QuickBooks Online (QBO).

If you wish to clear old transactions from your Accounts Payable (AP)/ Accounts Receivable (AR), you can create a clearing account in your QBO. This account is use to move money from one account to another account.

Here's how:

1. Go to Accounting on the left panel.
2. Select Chart of Accounts.
3. On the Chart of Accounts screen, click the New tab.
4. Choose Cash at bank and in hand an Account Type. You may choose any detail type you want for your clearing account.
5. Type in the Name for the clearing account.
6. Make sure you do not type in any amount on the balance before clicking Save and Close.

Once done, you can create a Journal Entry and apply the clearing account. You can follow the steps provided below:

Here's how to create a Journal Entry (JE):

1. Click the Plus icon.
2. Choose Journal Entry.
3. Add the AR or AP from which you are moving money.
4. Add the Clearing account.
5. Click Save.

Now you can apply the JE to the existing balance. Let me share again the steps provided by my colleague above:

1. Go to Expenses.
2. Choose Suppliers at the top.
3. Click on the supplier name, and look for the Bill to pay it.
4. Click the Make Payment button in the top-right corner. When the Bill Payment window opens, the Journal Entry will be under the Credits section.
5. Select the Bill and the Journal Entry to link them.
6. Click Save & Close.

However, I'd still recommend checking with an accountant about this for they can provide recommendations as to what account to use for debit and credit.

If there's anything else I can help you with or additional questions about the process of clearing transactions from your accounts, just let me know. I'd be more than happy to assist you further.