How should the cancellation of bank charges for a credit card be recorded? (a $60 annual fee, 2 months interest and a $28 late fee--all written off by bank)

Hi there, david-keene. 

Thank you for posting here on the Community page. Allow me to share with you how to create bank deposits in QuickBooks Online. 

When entering a bank charge directly on an invoice, you enter it as a negative amount. In your case, enter the amount of the bank service fee as positive. Another way of combining bank charges and customer payment is by creating a bank deposit. 

Here's how:

1. Select +New. 
2. Click Receive Payment, then enter all the payment information.
3. Select the checkbox next to the invoice you would like the payment to be applied. 
4. Select Undeposited fund as the deposit to the account.
5. Click Save to record the transactions
6. From the left panel, click +New and then Bank deposit.
7. Select the Account you want to put the money into.
8. Check the payment and under the Add funds to this deposit section, select the expense account you use in tracking bank charges.
9. Enter the amount fee as positive. 
10. Review the total deposit and then Save and close.

You can check out these links for more details in handling customer transactions:

• Record and make bank deposits in QuickBooks Online
• Common custom reports in QuickBooks Online

Reach out to me anytime if you still have questions or concerns about bank fees. I'm always here for you. Take care and have a good one.