Hi, I have a business that works on horses. Often times my clients are not there and the barn owner or manager pays the bill. I had that happen recently but this time I need to refund the customer leaving a negative balance. 

I saw Cathy’s horse in October, Erin paid for that horse by check. I did the invoice and payment under Cathy. Cathy sent a check in the mail not realizing the invoice had been paid. I need to record that I gave the cash back and deposited the check. So refund the cash leaving a negative balance and then depositing the check making the balance zero. I can not delete the first payment because it was already reconciled in Octobers bank reconciliation.

I am trying to reconcile my bank transactions for nov and this transaction is making it difficult. 

Thank you!