That is correct.  It was made in 2013.  Just bring it back into the books in 2014.  What ever happens in real life must also happen in your Sage 50 program.  Even though the payment was canceled, it must be recorded as such.  

I am not sure what the entry was for so I can't give you specific direction here but you could create a vendor credit or simply make a general journal entry debiting and crediting the correct accounts.  

That is correct.  It was made in 2013.  Just bring it back into the books in 2014.  What ever happens in real life must also happen in your Sage 50 program.  Even though the payment was canceled, it must be recorded as such.  

I am not sure what the entry was for so I can't give you specific direction here but you could create a vendor credit or simply make a general journal entry debiting and crediting the correct accounts.