I'm currently in Quickbooks Desktop with a client who paid off their credit card in 2019, however there remains on the books a credit card balance of $248.88. 2019 taxes have already been filed, so I'm trying to figure out how to make an adjustment for a prior period in order to clear out the balance.
I understand how to do this for checking accounts which are assets (DR Checking, CR Retained Earnings), however since a Credit Card is a Liability account I'm trying to figure out how to handle it.
If I DR the credit card account (to reduce the balance), I'm trying to figure out which account to credit. If I credit the checking account, it reduces my balance which then throws off the reconciliation in the checking account (plus it was paid off in 2019, a prior closed period). And I can't CR Retained Earnings to offset because that would Increase RE.