How to balance out accounts receivable having a credit balance?

I've got the steps you need to balance out your accounts receivable in QuickBooks Online, jtrout7.

To zero out customer's credit balances, you can either issue a refund or show there's a Sale to which it is applied.

Here's how to show a sale:

1. Click + New in the left panel.
2. Choose Receive payment.
   
3. Select the customer, then pick the invoice and credit.
   
4. Hit Save and Close.

To know more about this process and how overpayment works in QuickBooks Online, check out this article: Handle a customer credit or overpayment in QuickBooks Online.

Also, you can record a journal entry to balance out your accounts receivable. However, using this method (journal entry) needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide you on which account to debit and credit

Additionally, you can visit this write-up: Clear up customers with zero net balances in the Accounts Receivable Aging report. It contains more details on how to deal with customers' zero balances.

Stay in touch if you have follow-up questions. I'm always right here to help zero out the customer's credit balance or if you have any other QuickBooks related concerns. Have a nice day!