For this part: "The money was collected on July 10 , 2018. I cant seem to close it out."
You are supposed to process that as a Received Payment, to show it applies to that invoice. That's how you "close" it out = Apply it. This is not a Deposit and it is not income. It is the Payment for that invoice.
If you use banking download, you would Match to the open invoice. If you Added as a New Deposit, that would be the problem.