QB pro 2004 changed the way to handle bounced checks. Can anyone tell me how to do the recording to get the fees into a clients/customer's account? On the new 2004 version, there's no "expenses" button to click to get the specific account to show the fees etc.
Thanks!
The easiest way to do it is like this, numbers refer to line items:
1) Open Journal Entries. Referring to the date the item was actually returned, either from your statement or the return docket attached to the cheque, enter NSF as reference number. In the Account column, enter Accounts Receivable, debit the amount of the returned item, in the Description column, enter the cheque number of the returned item. In the Names column, enter the Customer name.2) In the Account column, enter the bank account the item was originally deposited to the bank took the funds out of, enter the amount of the returned item in the Credit column, copy the Description, and use the same Customer in the names column.
3) If your bank charged you a fee, in the Account column enter your Bank Charges expense account, Debit the amount of the fee, insert the copied Description, enter the same Customer Name.4) In the Account column, enter your Bank Account, Credit the fees, enter the copied description, enter Customer Name.
5) IF you are charging a fee to the customer, in the Account column, enter Accounts Receivable, Debit the fee amount you are charging (AT LEAST as much as your bank charged you, personally I'd double it for the Pain-In-The-Ass factor), insert the copied description, adding Service Charge, enter Customer Name.6) In the Account column, enter Miscellaneous Income, Credit the service charge, copy the description from Line 5 and insert in the Description column, enter Customer Name.
7) Print a statement and send it to the customer requesting replacement of the returned item by CERTIFIED FUNDS or CASH only.There are remedies in Canada if said customer fails to replace the item which may be applicable in the US. Let me know if anyone out there is interested in procedures in detail.... ;) Yes, I've been doing this a LOOONNNNNG time.
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