My bank allowed a check for $2,350.00 to be posted against my account twice. The payee deposited the check using online banking in September 2021...the bank cleared it, and I reconciled it against my bank statement. The payee deposited the same check a second time in December 2022 using online banking and the bank cleared it a second time. When I reported this error to the bank, it took them over a week to credit the money back to the account. Here is the problem: The bank deducted the money in December 2022 and credited the money back in January 2023. What entries can I make to satisfy an end of year reconciliation? I thought about posting a payment to the bank (not the payee) with the same check number on 12-29-22, reconciling December to the bank statement Ending Balance....but then how do I post the credit for when the bank corrected the mistake in January? The cleanest answer to this problem does not seem obvious to me so thank you for the help!
