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Correct accounting procedure

arijithroyarijithroy Member Posts: 1

We have a transaction that was for paying a bill for $34,460. This wire transfer had to be canceled out and returned because of a bad address entered by the bank. So they refunded us $34,351. We lost $109 in bank transaction fee.

What is the correct procedure for recording this transaction. I tried making a journal entry for "Payment returned" and crediting the bank service charge for the transaction fee. is there a way to tie the journal entry to the money outflow and inflow from the bank account?

in Accounting Technical Support
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