Click the “Record Bounced Cheque” on the far right to open Manage Bounced Cheque dialog box:


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Enter a bank fee charged by your bank in the Bank Fee box.  Enter the correct date and choose your expense account from a drop-down menu. Enter class if you use one and finally, enter a customer fee you charge to your customer in the Customer Fee box. Click Next to open Bounced Cheque Summary window:

 
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Compare the summary with the first screenshot and you will find that QuickBooks:

1.    Will mark Invoice no.142 of $288.15 unpaid and thus outstanding.  In other words, a journal entry is created to increase A/R and decrease bank account.
2.    Will reduce the amount of $288.15 (Cheque no.4848) from your bank account. It will also reduce $25 from your bank account as Bank Service Charges expense.  A journal entry is created to increase expense and decrease bank account.
3.    Will create a new invoice of $50 as you specified before as a Returned Cheque Charges income.
A new Other Charge item named bounced cheque Charge is created, posting to the Returned Cheque Charges income.

Click Finish and you will be brought back to Receive Payments window stamped with a red coloured “Bounced Cheque”:

 

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This new bounced cheque feature is definitely much simpler and easier to handle.