bounced checks written to vendors and returned vendor payments
I'm reconciling our account for the first time and I'm seeing a lot of bounced checks written out to vendors as well as other returned vendor payments. The returned money appears in the register as deposits. Is there a certain way I should be dealing with them? So far I've just been entering the vendor as Received from and I've been categorizing it as Returned Check/Payment.
Let me step in and help you reconcile your account. For your bounced check from your vendor, you can create a journal entry and use the Accounts Payable under the Debit column then choose the name of the vendor. Once done, you can link it to the vendor bill payment. Follow these steps on how to record it in your QuickBooks Online account. Here's how: