How do I file for an uncleared/bounced cheque?
A client paid by cheque for an item I sold. We deposited that cheque to our account, but then there was a problem with the client’s bank. The cheque appears on our account, then shows as withdrawn, then shows as deposited again, and then shows as withdrawn.
We set up a cheque holding account, so that when a cheque is received we can mark it as payment received. When the balance shows on the bank feed we can then mark it as a transfer from the holding account.
My question is, I can trace it from the holding account to the bank account and back, but in theory no payment has actually been taken. Do I just untag the initial transaction and ask for and log the valid payment when received?