Journal entry for clearing old cashed vendor check still on bank rec

Apples521 · ‎January 30, 2025

I'm cleaning the books for a client and have a particular check in May that was written to a vendor and cashed by the vendor in May. The May bank statement reflects this, however the check was not cleared on the bank rec in QBO. The opening balance is in check as I'm working my way thru August at the moment and I just can't make snese of how the balance would be spot on when that check was not cleared on the bank rec in QBO. I don't see any other adjusting entries addressing it.

What journal entry can I make to clear this so I don't have to go back and undo several months of bank recs?

Say the check was written to "Company" for $500 posted to account 5020: COGS: Materials

Rainflurry · ‎January 31, 2025

@Apples521

"The opening balance is in check as I'm working my way thru August at the moment and I just can't make snese of how the balance would be spot on when that check was not cleared on the bank rec in QBO. I don't see any other adjusting entries addressing it."

If the balance reconciles than there must have been an entry made in May to reduce the bank balance by $500. Therefore, you can reverse the $500 check with a $500 deposit (no journal entry needed). The question is what account to assign to the deposit. Most likely it should be 5020: COGS: Materials. That will reduce that account since it presumably was posted to in order to get the bank balance to reconcile. However, that's a guess. If you can't find the transaction that allowed May to be reconciled, that's the account I would assign to the deposit.

View solution in original post

Candice C · ‎January 30, 2025

Hey there, @Apples521.

Welcome back to the Community!

Based on the information you need, we recommend consulting with an accountant to be sure of what the next steps would be for the business. They'll be able to give you the best advice for the business.

If you don't have an accountant, check out this link to find one near you.

Feel free to reach back out if you have any other questions. Have a great day!

Rainflurry · ‎January 31, 2025

@Apples521

"The opening balance is in check as I'm working my way thru August at the moment and I just can't make snese of how the balance would be spot on when that check was not cleared on the bank rec in QBO. I don't see any other adjusting entries addressing it."

If the balance reconciles than there must have been an entry made in May to reduce the bank balance by $500. Therefore, you can reverse the $500 check with a $500 deposit (no journal entry needed). The question is what account to assign to the deposit. Most likely it should be 5020: COGS: Materials. That will reduce that account since it presumably was posted to in order to get the bank balance to reconcile. However, that's a guess. If you can't find the transaction that allowed May to be reconciled, that's the account I would assign to the deposit.

Apples521 · ‎February 03, 2025

Thank you! I figured it had to be something simple. I could still not find how it was reconciled, so I just made a deposit as you suggested and got it fixed. Thanks!

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Journal entry for clearing old cashed vendor check still on bank rec