NSF Check - How to Record In QuickBooks

Step one:

Company>make journal entry - date it the day or month that the check bounced

· Debit bad debt expense $100.00 (for example)

· Credit checking account $100.00

· Save and close

Step two:

Banking>make deposits

· Deposit to your regular checking account

· Skip "received from" column

· Account should be bad debt expense

· Memo that you are depositing a replacement check

· Enter the amount

· Save & close or print as usual

This will increase bad debt expense when you make the journal entry and decrease cash in bank

Then when you make the deposit of replacement check it will zero out the bad debt expense and put the money back into your checking account

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