I usually record it using a general journey entry so follow these steps:
To enter by Journal Entry:
- Click the "+" icon and choose Journal Entry.
- Enter the date the check bounced.
- In the Account column, select Accounts Receivable.
- Under Debit, enter the amount of the bounced check.
- Under Memo, enter a notation explaining the reason for the journal entry.
- In the Name column, select the customer name.
- On the second line, in the Account column, select the bank account.
- The credit and memo will enter.
- Click Save.
To change the first payment to apply to the journal entry:
- From the left navigation menu, click Customers/Invoicing
- Find your customer's and and click it.
- In the Transaction section, locate the Payment for the bounced check, double-click if to open it.
- Uncheck the Invoice it was applied to, and check the Journal Entry.
- Click Save.
Hope this helps
Tracy Collins-Collins Bookkeeping