Q. A commission check was returned to me because the check was written to “Keller Williams” not “Keller Williams Realty,” and the endorsement did not specify Keller Williams Realty. I have since straightened out the bank with “dba Keller Williams Realty” attached to the account name. In the meantime, the bank said I could not redeposit the check, so I sent it back to the title company, and they reissued the check for the same amount. I am depositing it today. Since this was in the same month and the amount didn’t change, should I show a debit back to the account and a credit for the new deposit? Do I have to re-do the commission portion?
A. You want the activity in your bank account to be reflected in AccountEdge/Lonewolf so that you can properly reconcile your bank account. Book a journal entry and credit cash, debit 1-1200 Returned Checks on Hand then redeposit it in AccountEdge/Lonewolf - Banking, and then Receive Money this month coded to 1-1200 Returned Checks on Hand to clear the balance, and deposit the check at the bank.