You’re on the right track, @HT10.
I’m here to walk you through the steps how to record the transaction one by one, just stand with me.
Let’s record first the returned check using expense. Here’s how:
1. Select + New.
2. Select Expense
3. In the Payee field, select the name of the customer who's check bounced.
4. From the Payment Account dropdown, select the account the money was supposed to go into.
5. In the Payment date field, enter the date you found out the check bounced.
6. Select and open the Category details ▼ dropdown.
7. In the Category field, select Accounts Receivable.
8. In the Amount field, enter the amount of the bounced check.
9. In the Description field, enter a note, such as "bounced check" or "NSF check."
10. When you're done, select Save and close.
Once completed, this expense will be used to offset the unpaid debt. After that, update the bounced check entry and reopen the original invoice. Here's how to do it:
1. Go to the Sales or Invoicing menu.
2. Select the Customers tab.
3. Find and select the name of the customer who's check bounced.
4. Find select the record for the bounced check.
5. In the Received payment window, select and uncheck the box for the original invoice the bad check was attached to.
6. Select the checkbox for the expense you just created in "Step 1: Enter the bounced check as an expense."
7. Select Save and close.
You can then make a re-deposit in the same amount. You must also ensure that money is received before closing the invoice.
QuickBooks Online offers a variety of reports to help you gather the information you need for your company. Run Reports In QuickBooks Online is an article that you can read for reference.
Feel free to drop your queries here anytime. I’ll be here to lend a helping hand. Have a great day!
