Thanks for joining this forum, @Chester_Kay. I'm here to share a few insights about how QuickBooks clear old transactions from accounts receivable (A/R).
Ideally, you'll need to record a refund to your customer using Cheque expense. In your case, since your customers are not eligible for a refund, you'll need to create a journal entry. Then, set the journal entry to reverse so it will offset the credits. Here's how:
Create a journal entry for Accounts Receivable
- Go to the Plus(+) icon at the top right.
- Under Other, select Journal Entry.
- Select the Journal Date. Make sure to enter the date of the end of the time period.
- Select the account affected by the invoice from the drop-down list in the Account column.
- Enter the amount in the Debit column.
- Enter the reason for this journal entry in the Memo field.
- Select Accounts Receivable from the Accounts drop-down list. The amount will be entered automatically in the Credits column.
- Select the customer from the drop-down list in the Name field.
- Click Save and close.
Set the journal entry to reverse
- Click the Search icon in the upper right.
- Find the journal entry you created and click to open it.
- Choose Reverse.
- Edit the Journal Date to one day after the original journal entry's Journal Date.
- Click Save and Close.
To ensure your books are accurate, I'd highly recommend you speak with your accountant. He/She should be able to provide you more expert ways of handling this situation.
Let me know if you have any other questions. We're always glad to assist. Take care.
