Hi all,

After the bank reconciliation, it is reported on the bank statement there is a canceled check for $740 in payment of an outstanding accounts payable that a firm failed to record.

How can I record this entry?

Thank you very much!

Hi all,

After the bank reconciliation, it is reported on the bank statement there is a canceled check for $740 in payment of an outstanding accounts payable that a firm failed to record.

How can I record this entry?

Thank you very much!

A cancelled check is a check that the bank returns to the issuer upon payment. This usually arrives with the bank statement.

Entry should be:
Dr Accounts Payable 740
Cr Cash 740