I paid a vendor by check for $100.00 and recorded it simply as a check charged to an expense account
No invoice or Accounts Payable entries.
Shortly after the check was cleared by the vendor, I discovered the payment shouldn't have been paid.
The vendor agreed and sent us a check for $100 as a refund.
So, how can I enter these two transactions - so I end up with a zero balance.
I can go back and redo the first entry if necessary
When you receive the check, enter it in as a deposit, post to the same account the original check you gave them was posted to, and enter a memo to indicate it was a refund (ie: "refund for our check #xxxx).
This way, you'll be able to track each transaction properly and your bank rec won't be off.
Stacy Kildal Certified Advanced QuickBooks ProAdvisor
That's what I did - It worked. Thanks.
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