QB Issue Resolution:

Delete any entries you made that contribute to the mess. You use the Receive Payment process and not JE. You make deposits from UF and not JE. You hardly ever use JE and not for routine tasks. Your amounts will still be in UF if you receive payments correctly and they are flowing to US and not directly to the checking account register.

Resolution for Issue 'Can I “undo” historical bank deposits made from “undeposited funds”?' available: Yes (Solved).
Source: Intuit Community forum.

Can I “undo” historical bank deposits made from “undeposited funds”?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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