How to Record a Bounced Check From a Customer in QuickBooks

Learn How to Record a Bounced Check From a Customer in QuickBooks® with Rhonda Rosand, CPA and QuickBooks® ProAdvisor from New Business Directions, LLC!
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[@fyuecd2]

Thank you so much you saved me a phone call to my accountant!!😂😂

[@newbusinessdirections]

That's awesome!

[@deltatruckparking-otaymesa]

Thank you very well explained

[@riciajones8931]

Question , what would happen to the 1st invoice for $500 since this new invoice which includes the $500 + bounce check fee is paid? Is the first invoice cancelled and payment applied to the new invoice?

[@rhondarosand4853]

The first invoice records the sales revenue when it actually happened and you receive payment for that, and that payment is what bounces. That invoice stays exactly as it is. The second invoice that you're sending is mapped to the bank account, which records the bouncing of the check. When you receive payment for that, it just puts the money back in the bank account and does not double up the sales revenue.

[@krisyl654]

I am confused. It seems that you just created another invoice that doubled up the income. So now you need to report $500 extra income? It should be an expense item?

[@rhondarosand4853]

The bounced check item is mapped to the bank account, not income or expense.

[@johngilroy8224]

HOW DO I ENTER A FRAUD CHECK AND THEN BANKS CREDIT?

[@newbusinessdirections]

That's beyond the scope of this video and would require additional information to sort for the proper recording. Please reach out to schedule a consultation if you would like to delve into this topic.