Hello. I just took over the bookkeeping for a small medical practice. The accounting/QuickBooks knowledge of my predecessors was pretty limited. I am trying to clean things up and need to correct some old mistakes.
The company pays most bills with a credit card. In a prior period, it looks like when the card transactions were downloaded, some payments were debited to accounts payable, rather than to the credit card account, resulting in a debit balance in accounts payable. Then journal entries were made to adjust the credit card balance.
Is my best recourse here to just make this adjustment to Retained Earnings, and thereby avoid changing anything in the prior period? I'm not sure if QuickBooks like R/E adjustments. I am looking for recommendations. Thank you!