I am having trouble reconciling last months bank statement due to an incorrect entry made early in the month.

We get cash from the sale of scrap metal once in a while and I tried entering it in the system a different way than I usually do thinking it would be better but it turns out its just causing me lots of headaches. First I created a vendor for the scrap metal company and went into post receipts, went to that vendor, clicked on cash, and distributed the cash to deposits. After doing this I realized that this isn't what I wanted to do and went to accounts receivable, apply deposits, and applied the amount of cash from scrap that I just entered into receipts to cancel out the transaction which seemed to work. I then entered the cash as I usually do in CM, bank transactions, and deposited the cash into a misc income account. 

Now when I try to reconcile the bank statement the deposit shows up twice and makes my outstanding balances more than they should be.