A step-wise guide for writing off bad debt in QuickBooks

QuickBooks provides innovative and technically advanced solutions for all the accounting, bookkeeping and related business processes. Credit and debts are integral to any business as no business can run on instant payments. When you generate an invoice for later payment but fail to recover the amount, then you need to perform the process of writing off bad debts in QuickBooks. This helps you balance your accounts. Through this article, we will tell you the detailed steps to write off bad debts for the users of QuickBooks Desktop.

If you are facing any issues while writing off bad debts in QuickBooks and you need assistance from an expert, then contact us at our TFN (844)-888-4666.

Write off bad debts in QuickBooks Desktop

Bad debts are debts that have become non-recoverable. In case, you come across a situation where you cannot collect money from a customer; you will need to write off bad debt in QuickBooks desktop. If the process is not done, then it will offset the accounts receivables and net income. Follow these steps for writing off bad debt in QuickBooks:

Step -1: Creating the expense account

1. Open your application and click on ‘Lists’.
2. Click on the ‘Chart of Accounts’ option and then press the ‘New’ button from the ‘Account’ menu.
3. Click on ‘Expense’ and then press the ‘Continue’ button
4. Press the ‘Save and close’ button after keeping a name.

Step -2: Closing the unpaid debt

1. Click on the ‘Customers’ menu and select the ‘Receive Payments’ option.
2. In the ‘received form field, enter the name of the customer.
3. Enter $0.00 in the Payment amount.
4. Enter the amount that you have to write off in the ‘Amount of Discount’ section.
5. Click on the ‘Done’ button.
6. Complete the process by clicking on the ‘Save and Close’ option.

Through this article, we discussed the detailed steps for writing off bad debt in QuickBooks. The steps to perform the process is different in both the variants and have been mentioned separately. You should be able to perform the process through these steps if you are using QuickBooks Desktop. If you are struggling and you need help from an expert to resolve the error, then contact us at our TFN (844)-888-4666.

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