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Double Entry Question

Double Entry Question

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I had a bunch of checks that did not clear through the years and I wrote them off this year.  My liabilities and my account do not match so I need to get them back in balance.  I thought I could do a journal entry but it threw it off more and I am not sure if it is because I am adding those checks back to my balance or not but how do i do this entry. Can anyone help?

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By jrr404
Mar 21st 2016 02:06

Create a new temporary account called allowance account. Enter the amount of the checks you are writing off in that account as a debit. Then credit the same to the Accounts Receivable account. Back to zero.

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By jleathers
Mar 21st 2016 16:29

Assuming you have verified that the money is not still owed, The JE is Debit cash and Credit the exp. check it was originally allocated to. Note on the JE to offset un cleared checks. Then, on the next reconciliation, you can clear the old checks and the JE that offsets the checks to get the net Zero effect. It is really important to clean thing up like this. It's a good idea to run a report of un cleared checks on a regular basis to eliminate the difference in the bank balance and QB balance.

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By msliz
May 10th 2016 17:48

I advise all of my QuickBooks students to be sure they are working with an accountant. In the State of New York, for example, an accountant is licensed, and responsible for the accuracy of the financial records. In a situation like this I would advise you to ask the company's accountant what the offsetting entry to bring the bank account current should be.

jrr's advice is good. Here's another way of explaining the same technique from the Intuit QuickBooks community:https://community.intuit.com/questions/717375-writing-off-uncleared-chec...

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