How to Write of Bad Debt in QuickBooks Desktop

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How to Write of Bad Debt in QuickBooks Desktop
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• There are times when an invoice in QuickBooks
  turns non-collectible and you just need to write
  it off and declare it as bad debt.

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• Writing off Bad Debts is an important step to
  have clear the invoice out of your accounts and
  receivable for reducing the net profit by its
  amount.

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• In this presentation, lets look at a few easy to
  follow steps for writing off bad debt.

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• Before you proceed, check and make sure your A/R
  Aging Detail report is correct. To check the
  report, go to Reports gt Customers Receivables gt
  A/R Aging Detail.

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• Create an account for bad debt.

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• From the Lists menu, select Chart of Accounts.

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• In the Chart of Accounts window, right-click
  anywhere and choose New.

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• In the Add New Account window, click the Expense
  radio button then choose Continue.

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• Assign the appropriate account number and in
  the Account Name field, type Bad Debt.

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Click Save Close
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Record the bad debt.
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From the Customers menu, choose Receive Payments.
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Select the name of the customer from whom you
incurred the bad debt.
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Leave the amount field at 0.00.
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Click the line item that will not be paid to
highlight it.
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Click Discount Credits.
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• Go to the Discount tab and in the Discount
  Account drop-down, choose the bad debt expense
  account created in Step 1.

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In the Amount of Discount field, enter the bad
debt amount then click Done.
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Click Save Close to record the payment.
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• While following these steps for writing off bad
  debts, in case if you encounter any problems,
  then contact Quick At Support Now!

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Contact us Now?

• To know more about the QuickBooks Desktop offered
  by Quick at Support, Contact us by using the
  following mediums
• Please Visit us at
• www.quickatsupport.com
• Dial our toll free support number
• 1-855-666-1972