We had a client that gave us a $1500 deposit that we posted on their acct. The guys in the shop didn't realize that this deposit had been given and invoiced and the client paid the full amount. We have since done another job for this client, so I have used $200 of this prepaid deposit. I now need to pay the client back the $1300. I was going to create a J/E as an inv for the $1300 and post it to the prepaid acct. I know this will clear that part of the transaction. What I am wondering is how the other half of this goes. I need to cut a chq that I would create a J/E for cr 1060 but what is stumping me is what acct I dr?
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