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Join nowA check of $5000 was paid to a vendor that was never cashed because they declared bankruptcy. Now my QuicKBooks says my checking account has $5000 less than the actual balance.
I think if I void the check and then credit my BAD DEBT account I may resolve the problem. Any thoughts?
Solved! Go to Solution.
Thanks for getting back to us for your follow-up concern, @cybtekinc. I'll be happy to outline the steps to handle the bill showing as payable after voiding the uncashed check in QuickBooks Desktop (QBDT).
In some cases, you may have balances as a result of voiding a bill payment. To resolve this, let's create a general journal entry (JE) to write off the amount. Before doing so, I suggest seeking an accountant's advice to ensure your books are accurate.
First, create an appropriate JE. Please refer to the steps below.
Once done, apply the JE to the existing credit. Here's how:
Furthermore, gaining an overview of your sales and expenses is a breeze if you generate reports. Doing so provides details about outstanding bills and their due dates, as well as all the transactions associated with each vendor.
Please don't hesitate to swing by the Community whenever you need additional help writing off vendor balances. It's always our priority to address your concerns. Take care and have a good one!
Hey there, @cybtekinc.
Thanks for taking the time to reach out to the QuickBooks Community.
You can void the check, and the balance will be credited back into your checking account. I've included some steps to void a check below.
For additional information about this process, check out Void or delete a bill or bill payment check.
However, if you feel you need further guidance, I recommend connecting with your accounting professional. Your accountant can review your account and let you know the best way to handle the funds based on your business needs. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center.
Please don't hesitate to let me know if you have any questions or concerns. I'm always around to lend a hand. Take care!
But that means there will be $5000 owed to the Vendor that no longer exists. How do I take care of that?
Thanks for getting back to us for your follow-up concern, @cybtekinc. I'll be happy to outline the steps to handle the bill showing as payable after voiding the uncashed check in QuickBooks Desktop (QBDT).
In some cases, you may have balances as a result of voiding a bill payment. To resolve this, let's create a general journal entry (JE) to write off the amount. Before doing so, I suggest seeking an accountant's advice to ensure your books are accurate.
First, create an appropriate JE. Please refer to the steps below.
Once done, apply the JE to the existing credit. Here's how:
Furthermore, gaining an overview of your sales and expenses is a breeze if you generate reports. Doing so provides details about outstanding bills and their due dates, as well as all the transactions associated with each vendor.
Please don't hesitate to swing by the Community whenever you need additional help writing off vendor balances. It's always our priority to address your concerns. Take care and have a good one!
The advice from @JaeAnnC is very wrong. I can't imagine why anyone marked that response as having solved your issue. The journal entry provided will take another $5K out of your bank account and not reverse the bill.
The proper way to handle this depends on a couple of things:
1) Are you on accrual basis or cash basis?
2) Was the bill entered in 2023 or a previous year?
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