REturned check in closed period

You'll need to create a Journal Entry (JE) to credit the payment back to your bank account, @SMCCF.

I'd be delighted to walk you through the steps in your QuickBooks Online (QBO) account. Before anything else, I'd recommend consulting your accountant for guidance on which account to debit and credit. 

When you're ready, you can move on to the following steps in creating a JE:

1. Go to the + New menu, and Journal entry.
2. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
3. In the next line, select the other account you're moving money to or from.
4. Check the amounts - you should have the same amount in the Credit and the Debit columns on the other. This means the accounts are in balance.
5. Enter information in the Memo section so you know why you made the journal entry.
6. Review the details, then click Save and new or Save and close.

You can also utilize this link for more details about the process: Create a journal entry in QuickBooks Online.

When everything is all set, feel free to check out these articles for reference. These can walk you through the steps on how to seamlessly match your accounts and file your Federal 1099s: 

• Reconcile an account in QuickBooks Online
• Create and file 1099s using QuickBooks Online

I'm all ears if you need more help with managing your vendors and account. Please don't hesitate to tag me in your response. I'll get back to you as soon as I can. Take care!