I sent a check to someone erroneously and they didn't cash it. The bank then transferred it back into my account. How do i record it?

Good afternoon centralofmd,

Thank you for reaching out to the Community! This is the approach we suggest when handling a return or bounced check. However, I urge you to communicate with your accountant to see what is the best practice is for your business. First, we will enter the check as an expense.

1. Click+ New.
2. Select Expense.
3. In the Payee field, choose the name of the customer whose check bounced.
4. From the Payment Account dropdown, click the account the money was supposed to go into.
5. In the Payment date field, enter the date you found out the check bounced.
6. Select and open the Category details ▼ dropdown.
7. Select Accounts Receivable, in the Category field
8. Enter the amount of the bounced check.
9. In the Description field, enter a note, such as "bounced check" or "NSF check."
10. Select Save and close.

From there, you will continue to unapply the bounced check payment from the original invoice, create an item for the check fees from the bank, and do a few other steps, which you can find in this article. 

• Record a returned or bounced check using an expense

As always, you can find me here if you have any other concerns or further questions about checks in QBO. Have a great rest of the day.