A bounced check in QuickBooks is a check that is returned to you due to insufficient funds, because the account is closed, or for some other reason that will not allow the bank to process it. When a check is bounced, QuickBooks will show the check as "bounced" or "returned" in your account register. When this occurs, you have to create the bounced check in QuickBooks by reversing the original payment and posting any bank fees associated with the bounced check. A journal entry can be done to record this transaction, or you can use the Record Bounced Check feature in QuickBooks. It is important to update the Accounts Receivable and the bank balance to account for the returned check and anything that you are charged, which is important for keeping your financial records up-to-date.