Our Huntington Bank transferred $2,429.64 and $287.32 in Loan Advances into our business checking account. There was also an Interest Charge for $4.04. A few days later they withdrew (bank automatically took back the amount they gave us to cover the charges) the amount due (Checking Reserve Payment) from our Debit (-) account. I set up two separate bank accounts in our Chart of Accounts. One is named Checking Reserve Advance and the other is Checking Reserve Payment. I transferred the two Loan Advances to the Checking Reserve Advance account in our Chart of Accounts then transferred the payment to the Checking Reserve Payment to the account. I am not sure which account to use to deduct the Interest Charge. The Checking Reserve Advance account shows the amount received as a deposit into our business checking. The Checking Reserve Payment account shows the payment going into our business checking? It also has the balance in red. I'm clueless as to why they are coming from the business checking and being paid from our business checking. The bank loaned us the money and we pay back through the debit in our business checking. Yikes!
The problem I have now is these transactions happened in April and I reconciled our account back then. In August I received another Checking Reserve Advance and Payment. I am not entering this one until I know I'm doing it correctly. We've only had these two overdrafts and I desperately need your help walking me through the steps. You are truly appreciated!!!!!!!
