# QBO Skills: Managing A/R & A/P: credits, refunds, bounced checks, bad debt

Questions with answers and explanations, from the Questiva Learning skills tests.
Version 2, authored 2026-08-23.
Take it interactively: https://www.questivalearning.com/qbcu-certification-prep#skills
## Managing A/R & A/P: credits, refunds, bounced checks, bad debt (chapter 6 of QuickBooks® Online Step-by-Step)

### Q1. When a customer returns items from last month's unpaid invoice, you should:

- **✓ a) Create a credit memo and apply it to the invoice.**
- b) Edit last month's invoice to take off the returned items.
- c) Issue a Refund Receipt.
- d) Delete the invoice and enter a new one for what they kept.

> The customer hasn't paid, so there's nothing to refund. A credit memo lowers what they owe without changing last month's invoice or the reports you ran from it. (Chapter 6 · Recording and Applying Credit Memos)

### Q2. A customer returned a paid item, and you're mailing them a check. In QBO you enter:

- a) A Credit Memo.
- b) A Check made out to the customer.
- **✓ c) A Refund Receipt.**
- d) An Expense.

> Money going back to a customer goes on a Refund Receipt, with Check as the Payment Method. A Check or Expense won't show in the customer's transaction list. (Chapter 6 · Creating Customer Refunds)

### Q3. You do weekly work for a customer but only invoice them at the end of the month. Each week, you enter the work as:

- a) A Sales Receipt.
- b) An Invoice for that week.
- **✓ c) A Delayed Charge.**
- d) A Delayed Credit.

> A Delayed Charge records the work without billing it yet. At month end, the charges show up in the invoice's Suggested Transactions drawer. (Chapter 6 · Delayed Charges and Delayed Credits)

### Q4. Which Statement Type opens with what the customer owed on the Start Date?

- a) Open Item.
- b) Transaction Statement.
- c) Invoice List.
- **✓ d) Balance Forward.**

> Balance Forward shows the balance as of the Start Date, then every transaction through the End Date. Open Item only lists unpaid invoices. (Chapter 6 · Generating Customer Statements)

### Q5. On the Bounced Check service item, the Income Account should be:

- a) Bank Charges.
- **✓ b) The Checking account.**
- c) The income account from the original sale.
- d) Accounts Receivable.

> It seems backwards, but using Checking means the new invoice deducts the bounced amount from the checking register, so it matches the bank statement. (Chapter 6 · Handling Bounced Checks)

### Q6. How should an accrual-basis company write off last year's uncollectible invoice?

- **✓ a) Use a credit memo with a Bad Debts item.**
- b) Void the invoice.
- c) Discount the invoice to zero.
- d) Delete the invoice and leave a note for the accountant.

> Last year's reports already counted that income, so voiding or discounting the invoice would change a past period. The credit memo puts the bad debt expense in this year. (Chapter 6 · Writing Off Bad Debts)

### Q7. How do you record an early payment discount on a vendor's bill?

- **✓ a) With a Vendor Credit.**
- b) Pay the discounted amount and leave the rest of the bill open.
- c) Set the bill's Terms to 2% 10 Net 30.
- d) With a Bank Deposit from the vendor.

> QuickBooks® Online doesn't have discount terms built in. Enter the discount as a Vendor Credit to Purchase Discounts and apply it when you pay the bill. (Chapter 6 · Creating Vendor Credits)

### Q8. When a vendor refunds an office supply purchase by check, record it with:

- a) A Vendor Credit against their next bill.
- b) Receive Payment.
- c) A Credit Card Credit.
- **✓ d) A Bank Deposit.**

> A refund check from a vendor goes on a Bank Deposit, coded to the same expense account as the original purchase. (Chapter 6 · Creating Vendor Refunds)

### Q9. A sales tax payment entered as a Check should be:

- **✓ a) Deleted and redone in the Sales Tax App.**
- b) Recategorized from Sales Tax Payable to a Sales Tax Expense account.
- c) Excluded in the bank feed.
- d) Replaced with a Journal Entry.

> Pay sales tax in the Sales Tax App. A Check or Expense won't show in the app or on the Sales Tax Liability reports. (Chapter 6 · Paying Sales Tax)

### Q10. Which is true about automatic Late Fees?

- a) They're added to an overdue invoice the next time you send it.
- b) They can only be a flat amount.
- **✓ c) They only apply to new invoices.**
- d) You can't turn them off for one customer.

> Turning on late fees only affects new invoices. For ones that were already overdue, add a Late Fees line to each invoice or create a separate invoice for the fees. (Chapter 6 · Adding Late Fees)