I was double billed in error from my insurance company on my credit card. Instead putting the credit back on my credit card they issued me a cheque. How do I handle the cheque and paying the bill twice in my payables?
You have Credit Card (Credit) Insurance (Debit) let say 100$ every month
When you receive cheque from insurance (double charged) Post cheque to CR Insurance expense account $100
You can also to create new account bank "Transfer" or expense "To be clear" and use them to clear transactions as double payments or double charge
For example in you case, if you:
Post bill Insurance expense, pay bill from credit card
Post another bill insurance expense and pay from credit card
Receive refund from insurance to your bank account
Post to insurance expense (it'll be debit bank credit insurance expense)
Or change second bill to transfer account or to be clear account
and when you receive cheque post it to transfer account or to be clear account
