How to record customers’ bounced checks using Accounts Receivable

Learn how to handle the accounting in QuickBooks Online when a customer’s check bounces. Or follow these steps if you need to record one of your own bounced checks.

Did your customer pay for their invoice with a check that didn’t go through? Unfortunately, customer checks sometimes bounce. We’re here to show you how to handle the accounting in QuickBooks Online.

What you need to record #

These steps can be complicated, but doing them correctly balances your accounts so you have a clear record of what happened. Here’s what we need to do:

  • Show the amount of the customer’s check was deducted from your bank balance.
  • Show the bank charged you a fee.
  • Mark the customer’s invoice they were supposed to pay as “open” and unpaid.
  • Charge your customer a fee for the inconvenience (this is up to you).
  • Send a statement to tell the customer what they owe you for the original invoice and any fees.

How to record a bounced check #

There are a few ways to handle the accounting. You can use an expense or a journal entry. Follow the method that works best for you.

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