Not billed and now have an outstanding balance.

I have been using the iTunes store for some time now (few years), and too see this happen is a surprise. I have the funds in my bank, credit source for instant funds, but never even received a receipt from PayPal or Apple. So this appears to be a fault on Apple.
When showing purchase history, I see this:
The billing of a previous purchase has failed. Your last PayPal transaction was declined because some action is required by you regarding your PayPal account. For example, you may need to add funds to your cash balance if you have no other instant funding source. A bank account does not normally qualify as an instant funding source but a credit card or cash balance do. Please provide payment information and click Done to pay your outstanding balance and continue using the store.
Thing is, I only had found out when I reported bad sound quality on one of the songs in an album (crackling sound).
Argh! I definitely want to pay, but am not touching my payment options incase it double charges. Any ideas? Is Apple having billing problems? Because of this, I can NOT purchase anything in the store now.

Have you contacted PayPal to make sure that it's not their problem? Just because you can buy from another vendor doesn't mean that PayPal is able to connect to and pay to the iTunes Store without problems. I'd suggest you contact PayPal first to confirm that they don't show a problem on their end.
If PayPal doesn't report any known problems, contact the iTunes Store Customer Service department using the form on their Support page (select the category and subcategory closest to the issue you're reporting) and explain your situation to them.
As regards not having gotten receipts, log into your iTunes Store account and go to your account information and confirm that it shows a valid email address. Then check any spam filters on your email account or email application and make sure that email messages from Apple are not being filtered out.
Regards.

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