How do I close out balance on customer account? Quickbooks Online
We agreed to pay the wire fee for a large amount of money we were sent from a customer. The money received was to pay off an open invoice. The wire fee was $40 so the customer’s payment was $40 short and when I processed a receive payment for the open invoice it shows a balance now of $40. Should I record a credit memo to cover the $40 so the customers account ledger shows a $0 balance? Should I record the $40 as bad debt expense? Not sure how to record the $40 wire fee. Thank you for your help!!
Hey Jora! You are on the right track. Yes, you should record a credit memo for $40 and apply it against the customer invoice so that the open balance zeros out. It’s not really bad debt expense but just a wire transfer fee that your company decided to pay so I would post it to bank charges/fees account.
Crystalynn Shelton, CPA