Hello there, klclark. Let me provide information about correcting the bank error and adjusting entries on your QuickBooks Desktop (QBDT).
When reconciling accounts in QBDT, it's essential to follow the bank statement downloaded to ensure accuracy. Since the check cleared for $120.94 instead of the intended $1,120.94 in August, you’ll need to conduct a mini-reconciliation and edit the check to match the posted transaction. Here’s how:
- Navigate to the Banking menu and select Reconcile.
- Select the bank account with the transactions you need to reconcile.
- In the Date of Statement field, enter the date for an off-cycle reconciliation. This date can be between your last reconciliation and the next scheduled one.
- Type the balance from your last successful reconciliation in the Ending Balance field, then click Continue.
- In the Reconcile window, check off the transactions you are fixing and re-reconciling.
- Make sure the Difference field shows $0.00.
- When everything looks good, select Reconcile Now.
Then, let's create a new check to account for the correction of $1,000 posted in September. Here's how:
- Go to Banking, then Write Checks.
- Choose the same bank account used for the original check.
- Enter the vendor's name and amount of $1,000. Set this in September (the date of your correction).
- In the Expenses tab, select the appropriate expense or accounts payable account to categorize this check properly.
- Click Save & Close.
While you can make these adjustments, it’s advisable to consult with your accountant for guidance on how best to handle these corrections. They can provide insights into any potential implications on your financial statements and ensure compliance with accounting standards.
Furthermore, I've helpful articles below for more ways to correct the wrong balance and other related topics:
Remember, you can ask me any questions about correcting bank errors and adjusting entries in QBDT. I'm always here to help.
