Hello,

I have taken over the accounting at a company and I want to make the books "clean".  I have gone through the AR aging and there are many customers with relatively small credit balances in AR that were recorded as deposits at the time (they overpaid).  We have contacted some of the clients with the bigger credit balances and none want it because it's too small (and/or we don't do business with them anymore).

I am trying to clean out the the AR by doing the following: if there is a deposit, I tried making a sales invoice for the same amount:

However, the above transaction gives the following journal entry:

This, obviously, does not balance (and I am not sure why).  According to my logic, once upon a time the entry was:

Dt. Cash
Cr. AR (deposit)

Now I just did (via invoice):

Dt. AR
Ct. Miscellenous revenue

And I want to finally do:

Dt. AR (deposit)
Ct. AR (misc. revenue)

But the last entry does not balance... I don't know why.  It might be important to mention the functional currency is $CAD and some clients are in $USD or EUR