Writing Off Bad Debt in QuickBooks? You Need To Read This First?

1
Writing Off Bad Debt in QuickBooks? You Need To
Read This First?

• When the invoices which you send in QuickBooks
  Desktop become un-collectable then the users
  should register them as a bad debt and write them
  off. In this presentation, we will provide you
  with the steps for writing off bad debt in
  QuickBooks. Now move to the next slide for
  knowing the steps.

2
Methods for writing off bad debt in QuickBooks.
Creating the Bad Debt Account in QB

• In the first step, from the Company section,
  click on the Gear icon and select the Chart of
  Accounts option.
• Select the option for creating a new account.
• From the Account Type drop-down list, click on
  the Expenses option.
• Then, from the Detail Type drop-down list, select
  all your Bad Debts and type the Bad Debt in the
  Name field.
• In the end, select Save and Close for completing
  this procedure.

3
Setting up a Credit Memo for the Bad Debt

• At first, click on the plus icon at the top of
  your QB dashboard.
• Now, under the Customers section, select the
  Credit Memo.
• Next, from the Customer drop-down list, select
  the customer.
• Now, click on the item that which you have
  created for the bad debt in the Product / Service
  field.
• Enter the amount of bad debt or unpaid invoices
  with positive values.
• Go to the memo text box and type in the amount of
  bad debt in there.
• In the end, click on the Save and Close option
  for completing this step.
• After that, go to the new product and then from
  the Product / Service Information section, select
  the Non-Inventory option.
• Next, type Bad Debt inside the Name text box.
• Now, in the Income Account section, click on the
  Bad Debt expenditure.
• Then after, un-mark the Is Taxable check-box.
• In the end, click on the Save and Close option.

4
Conclusion

• In the previous slides, we discussed the methods
  for writing off bad debt in QuickBooks. In case
  you have any query related to QuickBooks, call
  our QuickBooks experts for help at our toll-free
  number (855)-526-5749.