How to Handle Returned Customer Payments in QuickBooks Online (draft)
Handle a rejected or failed bank transfer payment in Quickbooks Online:
Go to the Plus (+) icon, then select Journal entry under Other.
Debit Accounts Receivable for the amount. Make sure the name of the customer is put in under the last column that says customer name.
Credit the checking account for the same amount.
Save the journal entry.
From there, it will put the amount back into that customer's account and take it out of the checking.
Next, make an invoice for any bounce fees we are charging the customer.
After they pay again, we accept the payment as we normally do, and then apply the payment to the journal entry AND to the invoice we created for the fees.
The golden rule in accounting is that debit means assets (something you own or are due to own) and credit means liabilities (something you owe).
On a balance sheet, accounts receivable is always recorded as an asset, hence a debit, because it’s money due to you soon that you’ll own and benefit from when it arrives.
A journal entry shows when an account balance goes up or down. That change is described as a credit or a debit. The way these terms are used isn’t always intuitive. This table shows what happens when a debit is made and when a credit is made:
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