Thank you for posting here in the Community, @jeffbrown614.
Let me guide you on how to record returned donation checks in QuickBooks Desktop.
To start, you can create an item, and income account for tracking bounced checks and their associate's charges.
Once done, create a journal entry to reverse the original payment. Here's how:
- Go to the Company menu, then select Make General Journal Entries.
- In the General Entries window, debit your account receivables for the same amount of the NSF check.
- Enter a note in the Memo column describing the transaction.
- Choose the name of the customer or job associated with the NSF check, under the Name column.
- Credit the checking or bank account that received the original deposit.
- Click Save and Close.
After, switch the payment for the invoice to the reversing journal entry.
- Go to the Reports menu.
- Select Customers Receivables, then choose Customer Balance Detail.
- Double-click the original payment line for the NSF transaction.
- In the Receive Payments window, move the checkmark from the invoice to the reversing journal entry.
- Select Save & Close.
For additional information, you can refer to this article for details: Handle Non-Sufficient Funds (NSF) or bounced check from customers.
In case you want to handle a check returned by your vendor due to non-sufficient funds, you can check this article: Manage a bounced check you wrote.
Please let me know if there's anything I can help you with QuickBooks. I'm always around whenever you need help. Have a nice day.
