I' m using
I'm so lost.
Please list the account name you are talking about. Are you refering to Undeposited Funds?
Your third point is off. If you credit bank you debit expense. When the bank returns the money you debit bank credit expense and you are back to zero. That is strictly looking at the journal entries. The mechanics of entering it through Quickbooks transactions may be what is confusing.
Danielle,
Fraudulent overpayment in advance. Here's my solution. My questions are at the end.
Your scenario implies that 1) a valid bill from a valid vendor was received and 2) an authorized person wrote a check 3) for more than the amount due 4) before the due date. 5) Subsequently, your bank refunded you the entire amount of the fraudulent payment.
Solution - In the Chart of Accounts, create an asset called "prepaid expense", which represents vendor services/products you are owed due to paying before expenses are incurred. Similar to how insurance policies are paid, then expensed.
to record bill payable: debit expense; credit a/p
to record payment of the bill (amount due & overpayment): debit a/p; debit prepaid expense ;credit bank
to reverse fraudulent payment: debit bank; credit a/p; credit prepaid expense
If the solution works, never mind the questions. Otherwise, please provide more info.
What was fraudulent about the payment?
Why do you call the amount an overpayment?
Why do you say the payment was made in advance?
