Question

A check from one of your customers has been returned by your bank due to non-sufficient funds. Which action is the most accurate way to record this event with the returned check fee in QuickBooks?

Answer 1

To record a returned check and the associated fee in QuickBooks, create a sales receipt and adjust your accounts receivable.

Step-by-step explanation:

To record the returned check and the associated fee in QuickBooks, you can follow these steps:

1. Create a new sales receipt for the amount of the returned check.
2. Select the appropriate customer and account associated with the returned check.
3. In the same sales receipt, add a line item for the returned check fee, using an appropriate income account.
4. Save the sales receipt.
5. Adjust your Accounts Receivable balance by recording the returned check as noncollectable or bad debt.
6. Record the fee as income in your appropriate revenue account.

The most accurate way to record a returned check due to non-sufficient funds and a returned check fee in QuickBooks involves several steps. First, create a new expense to record the bank fee.

Use an expense account dedicated to bank fees or a miscellaneous expense account to categorize this charge.

Then, create a record to decrease your bank account balance for the amount of the check that had bounced and re-invoice your customer to collect the payment again, including the bank fee if you plan to pass it on to the customer.

Ensure you are using the appropriate accounts to reflect the increase in accounts receivable and the decrease in your bank balance due to the returned check.