I am involved in maintaining tenant rental accounts. We had a tenant write a check for $200 that came back due to insufficient funds. Our accounting department said the amount was debited from the account to which we tried to deposit it. Does this mean we had to cover the cost of this check? In that case, the tenant owes us that back, plus the original $200 for the rental payment, for a total of $400, correct?
Incorrect. Look at it this way. Your tenant owed you $200 for rent. When you deposited the check, you reduced the amount he owed you to zero. When the check comes back, you undo that credit you gave the tenant, and he now owes you the same $200 he did before giving you the check, plus any fee you have told tenants they would have to pay for giving you a rubber check.
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Incorrect. Look at it this way. Your tenant owed you $200 for rent. When you deposited the check, you reduced the amount he owed you to zero. When the check comes back, you undo that credit you gave the tenant, and he now owes you the same $200 he did before giving you the check, plus any fee you have told tenants they would have to pay for giving you a rubber check.
