I have a $2,000 payment received in 2023 and a $2,500 payment received in 2022 against an invoice that apparently was incorrect. Now, in January 2025 we received what should have been the remaining balance of $4,500 against this invoice.
The original journals would be Debit checking, Credit A/R. If I reverse that entry as of 1/1/2025 and apply the $4,500 received in Jan to that outstanding A/R, won't the checking credit throw off my bank rec?
If instead I credit sales, then my P&L by customer report is showing I have sales for that customer, which isn't right since we recognized that in 2022 and 2023.
Can someone help with the proper entry to record this $4,500 payment?
