We issued a check on 09/22 for 31.14 through the online bill pay system at our bank. No problems it showed up on the statement and we cleared the check through reconciliation when we received the statement dated 09/25.
Unfortunately, the check was not cashed and the set it stale on 12/23 and issued a "deposit" of the 31.14 back into the account.
Now, since this happened in a prior period (end of 3rd quarter) and that period has been closed, I'm not sure how I should handle the transaction. Here are my thoughts:
1. Create a reverse entry for the expense and cash in Dec to put the balances back to where they were and this will then allow the bank statement to balance.
2. Create a new payable same as the first with an explanation and then reissue the check.
Thoughts? Is this acceptable under GAAP?
Unfortunately, the check was not cashed and the set it stale on 12/23 and issued a "deposit" of the 31.14 back into the account.
Now, since this happened in a prior period (end of 3rd quarter) and that period has been closed, I'm not sure how I should handle the transaction. Here are my thoughts:
1. Create a reverse entry for the expense and cash in Dec to put the balances back to where they were and this will then allow the bank statement to balance.
2. Create a new payable same as the first with an explanation and then reissue the check.
Thoughts? Is this acceptable under GAAP?