What happens to the invoice when you record a bounced check in QuickBooks?

• A. The invoice is marked as unpaid and a bounced check fee line item is added.
• B. The invoice is canceled.
• C. The customer is removed from records.
• D. The system automatically emails a reminder.

Answer: (A)

When a check bounces, QuickBooks reverses the payment that was applied to the invoice, so the invoice becomes unpaid again. At the same time you typically add a line item for a bounced check fee to recover the cost of the returned payment. This keeps your accounts receivable accurate and shows the extra charge to the customer. It’s not that the invoice is canceled, the customer is removed, or an automatic reminder is sent—the correct process reflects that the payment didn’t go through and the customer owes the original amount plus the bounce fee.