We recently cancelled an insurance policy and have thus received a refund of $357.00. How do I record this in Sage50? (Note: our insurance policy is considered a prepaid asset and is put to the account 1320 Prepaid Expense under the current assets section of our chart of accounts.)

Is the following acceptable?

Dr. 1020 Cash to be deposited         357.00
Cr.      1320 Prepaid Expense              357.00
     To record the cash/cheque received, but not yet deposited.

When the owner goes to the bank to make the actual deposit, I'll do another general journal entry as follows:

Dr. 1060 Chequing Bank Account              357.00
Cr.      1020 Cash to be deposited               357.00
     To record the deposit of cheque #123456 into the chequing account.

Instead of doing the second general journal entry, I was thinking I'd credit "1020 Cash to be deposited" account via Sage50's Deposit Slips, however, it seems items in "1020 Cash to be deposited" are not listed in the Deposit Slip window even though the account "1020 Cash to be deposited" has an entry made to it using a general journal entry. (One can see the amounts in the general ledger report for both 1020 and 1320.)

I get how this is 'workable' for the purposes of account reconciliation, however, there is no 'official' deposit slip generated in Sage50. I guess I'm looking for the optimal way of doing this. 

Thoughts?

Thanks!

Kristine