We appreciate you getting back here in the thread, @karenn555. We'll share details about doing journal entries inside QuickBooks Online (QBO).

Yes, you're right. The journal entry will adjust the amount paid to your contractor, but note that it's only for your recordings inside the program. If you're unsure of the process, we recommend reaching out to your accountant so they can help guide you. If you don't have an accountant, I can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.

In addition, here's an article to help you manage 1099s inside QBO: Create and file 1099s with QuickBooks Online.

We're open 24/7 if you need further assistance managing contractors or have any additional questions related to the program, @karenn555. Feel free to drop by anytime so we can help you out. Stay safe.