Quickbooks Journal Entry

  • Sumo

Please Note: (Change “Other Currently Liability” to “Accounts Receivables”)

I apologize as I made an error on the video and down below.

In this Video of we will be covering how to record a chargeback using general journal entries.

For example, when doing a Quickbooks Bank Reconciliation one may see that money was taken out by the merchant account company for a chargeback. When the merchant company does that, they put the money into a holding ground.

To record that, you basically make a journal entry where you credit your bank account that the money was taken out from and debit a holding account that you created under your chart of accounts called for example “Chargebacks – Bank 1”.
This account is an “Other Currently Liability”.

Now that it is in a holding ground. Two outcomes usually happen. One you either win the chargeback or you lose.

If you win the chargeback, when funds are deposited back into your account, you simply do another journal entries with the same account, except reverse the role on teh debit and credit. Which means the bank account will get a debit, and the chargeback account now get a credit.

If you lose the chargeback then you basically do a journal entry where you still credit the chargeback, but now you basically debit an expense called “bad debt”.

Article Source: Quickbooks Tutorials

Resources:quickbooks( Wikipedia ) Accounting ( GOV) journal entries (EDU)