How to Account for PMT returned to CHQ account

Question

I have been working with QB for a short while and and am currently using

2005 Pro.

I am wondering if some light could be shed on the best way to account for a wire transfer that was returned (credited) to a chequing account. There was an error with the recipients bank address and the amount was credited back to the account shortly after it was withdrawn. The following day the funds were again withdrawn and delivered to the correct recipient.

Should I simply be making a deposit to the account that was debited or is there a better/easier way?

Many thanks for any assistance offered, my apologize for my inexperience.

Holly Berard

!-! · Accepted Answer

Sure, make a deposit to the account that was debited.

There is an alternative, a minor variation that may sometimes be very slightly simpler when the payment is reissued within a short period as in your situation. Instead of debiting the original account you can credit a "clearing" account and then debit the reissued payment to this same account so that it is "cleared". Many accountants create a "bank" clearing account for this purpose, but you can use an existing account such as "Opening Bal Equity" (automatically created in all QB files even if you don't see it in your chart of accounts) or Prepaid Expense or Accrued Liabilities.

"Chris Stewart" wrote ...

account for a

inexperience.

How to Account for PMT returned to CHQ account

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