When dealing with a bounced check from a customer, it's crucial to address the situation promptly. I'll be here to guide you through the process of recording this and categorizing transactions to maintain accurate financial records. 

First, record the bounced check  using a journal entry. Consider consulting an accountant to guide you through the process. Here's how:

Step 1: Create a Journal Entry (JE). 

1. Click + New.
2. Under Other, select Journal Entry.
   
   
   
   
3. In the Journal Date field, enter the date wherein the check bounced.
4. On the first line, select Accounts Receivable from the Account menu.
5. In the Debits column, enter the amount of the bounced check.
6. Pick the customer from the menu in the Name column.
7. On the second line, select the bank account from the Account menu.
8. The amount should appear automatically in the Credits field.
9. In the Memo field, enter the reason for the journal entry. Then, hit Save. 
   
   

Step 2: Unlink the bounced check from the original invoice, and link it to the Journal Entry.

1. Click Sales and choose Customers.
2. Tap the name of the customer who issued the bounced check.
3. Find and pick the bounced check.
4. Clear the checkbox of the invoice the check was originally applied to, and select Journal Entry.
5. Hit Save.

The bounced check is now linked to the JE.

Step 3: Create a bank deposit affecting Accounts Receivable (AR).

1. Go to +New and choose Bank Deposit.
2. Pick AR from the Account dropdown.
3. Select the transaction.
4. Make sure the total amount of the transaction matches your deposit slip.
5. Hit Save and Close.

Finally, you'll be able to link it to the original invoice. 

By following these detailed steps and best practices, you can effectively manage bounced checks from customers and ensure accurate categorization of transactions in QBO. This approach not only helps in maintaining financial clarity but also supports informed decision-making for your business. I'll be more than happy to address queries you may have about handling checks, invoices, and payments. Just add a comment below. Providing you with clear, straightforward guidance is my priority, Ametz1201.