Recording Bounced Checks in QuickBooks

How do you record the transaction in QuickBooks when a customer's check has been returned?  Unfortunately, with the economy and new bank rules, this is happening more and more.  Your bank may also charge you a fee because a check has bounced.  How do you record this, let your customer know that it has bounced, and pass a fee on to your customer?  There are several steps.

First, create two new items:

1. Go to your item list and create a new item called "Bounced Check". 
2. Item type should be "other charge"
3. The amount field can be left blank
4. Select "non" for the sales tax field
5. In the account field, select your bank account
6. Create another item called "Returned Check Charge".  This item will be used to charge your customer a fee for their returned check.
7. Follow steps 2 -4
8. The account field should be an income account such as Returned Check Charges.  (You may have to create this as well)

Second, create an invoice to your customer.

1. Click "Create Invoice"
2. Select the appropriate customer:job
3. There will be two items on this invoice.  The first item will be "Bounced Check".  The amount will be the amount of the check which bounced.  The second item will be "Returned Check Charge".  This amount will be the amount you are charging your customer.  Make sure it at least equals what your bank has charged you.

Third, when the customer sends you another check or your bank re-deposits the check, receive payment against the above invoice.