Example: Reversing a client's cash receipt that was applied to an invoice
Invoice client ABC
| Amount | ||
| 1140.00 | Accounts receivable 108 | |
| (1000.00) | Sales 301 | |
| (80.00) | PST 219 | |
| (60.00) | GST 218 |
Cash receipt applied
| Amount | ||
| 1140.00 | Bank 104 | |
| (1140.0) | Accounts receivable 108 |
Say that the check bounces. Reverse the cash receipt.
Create new miscellaneous invoice.
| Debit | 1140.00 | A/R 108 |
| Credit | (1140.00) | NSF clearing account |
Reconcile the bank
| Debit | 1140.00 | NSF Clearing account |
| Credit | (1140.00) | Bank 104 |
Reports
The entry is displayed on the cash receipt journals, accounts reconciliation reports, payment history, trial balance and integrated WIP and AR reports.