A/R problem

It's my pleasure to assist you today, Mickey13611. Let's team up to clear this AR aging and remove the customer credit balance in QuickBooks Online.

You have a couple of options to clear the credit balance, depending on your situation:

Option 1: You need to create an invoice and then Apply the Credit to it.
Option 2: If the credit resulted from an overpayment, delete the original payment to eliminate the balance.
Option 3: If the credit was due to an overpayment, delete the original payment first to clear the balance.

If the credit cannot be applied to the invoice, you can create a journal entry to move the balance to the appropriate account.

Here's how:

1. Select + New.
2. Under Other column, select Journal Entry.
3. Enter the Journal date.
4. On the first line, debit the Accounts Receivable for the credit amount to reduce the receivable and enter the amount.
5. In the second line, credit an appropriate account (like “Miscellaneous Income” or “Bad Debt Expense”) to balance the entry.
6. Press the Save and close.

Furthermore, it is good idea to consult with your accountant to ensure the entries and accurate category of your transactions.

For more ideas, you can also run the AR aging report to view the current balances. See this page for your guide: Run an accounts receivable aging report. 

Additionally, if you want to view your balance sheet report in the future, refer to this page: Run a Balance Sheet report in QuickBooks Online. It provides a financial overview of your company and determines its overall value.

If you have any specific guidance or concerns regarding this AR aging concerns, please let me know. I want to ensure that our approach aligns with best practices and maintains our accounting integrity.

@Mickey13611 

The reply from @ChristineJoieR is very wrong.  It will add to your credit balances, and you don't want to use a journal entry when possible.

If the payment was applied to the customer's account without an invoice, then you'll need to determine what the payment was for and why it's still sitting as an A/R credit.  I'm assuming there are no open invoices that offset these credits, correct?  When that payment came in, what was the reason for the payment?  Was it income?  Do you owe it to the customer or is it yours?  If it's yours, and it was never recorded as income, then create an invoice to record the income and apply the credit to the invoice.