When your client (or nemesis J) has paid by a cheque and it has bounced… dishonoured by the bank – how do you record this in your bookkeeping?
Usually there will be a Credit deposit and Debit when the cheque is dishonoured, so they will cancel each other out and are NOT worth entering at all.
Re-invoice the client for the bank fees you have been charged, using a service type invoice. Use the N-T or FRE tax code. Send it with a friendly note that the cheque bounced and these are the fees you have been charged!
When the cheque is presented (or you receive another cheque) allocate it to the correct invoice.
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