I have had a transaction bounce. Do I delete that transaction or is there a way to make an entry so that it doesn't show up on the final balance sheet

You've come to the right place for recording bounced checks, @janeaerospacepvt.

To clarify, are you referring to a customer's bounced checks? To handle this, you can use an expense or a journal entry. Follow the method that works best for you.

• Record a customer's bounced check with an expense in QuickBooks Online
• Record a customer's bounced check with a journal entry in QuickBooks Online

Otherwise, if you’re referring to a check returned by your vendor due to non-sufficient funds, you’ll have to record the NSF fee your bank charges you. If your check bounced, but your bank covered it and charged you a bank fee, you only need to record the bank fee since your check was processed.

1. Select + New.
2. Select Expense.
   
3. From the Payee ▼ drop-down menu:
   • Select the vendor if the bank charged it to them.
   • Select the bank if they charged it to your account.
4. From the Payment account ▼ drop-down menu, select the account you use to pay expenses.
5. To distinguish it from other expenses, enter “NSF fee” in the Ref no. field.
6. Under the Category column, select Bank Charges.
7. Enter the amount you were charged for.
8. Select Save.

However, if your bank didn't cover it, and the vendor returned the check without redepositing it, you need to record the bank fee and void the check since your vendor didn’t accept it as payment. Refer to the scenario 2 in this article for the detailed steps: What to do if your check bounces and your bank account has non-sufficient funds.

Should you need any further assistance handling bounced checks, please don't hesitate to comment below. I'm always available here to help.