Step: Write Off Bad Debt in QuickBooks

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How to Write Down Bad Debts in QuickBooks

• When a customer doesn't pay a debt owed to your
  company, the first invoice goes unpaid. The debt
  makes it difficult to reconcile your accounts and
  run accurate reports. Before recording a nasty
  debt, you ought to create an account for the aim
  of tracking such transactions. By doing so,
  you'll use the Discounts and Credits option
  within QuickBooks to record the debt while
  keeping the debt organized during a separate
  register for tax purposes. Recording bad debts
  into your regular customer register can make it
  harder to trace the debt. Click for more info-
  How to Write Off Bad Debt in QuickBooks

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Create debt Account

• Click the "Company" menu and choose "Chart of
  Accounts."
• Select the "Account" button. Click "New."
• Choose "Expense" because the account type. Click
  "Continue."
• Click the "Number" text field and enter the
  account number, if applicable. Select the
  "Account Name" field and sort "Bad Debt" into the
  text area. Click "OK."

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Record debt

• Click the "Customers" menu and choose "Receive
  Payments" from the drop-down list.
• Choose the customer with the debt from the
  customer list.
• Select the road item that corresponds to the
  debt.
• Click "Discounts Credits." Select the "Amount
  of Discount" field and enter the entire for the
  debt. Click "Done."
• Select "Save Close" to shut the transaction
  window and finish recording the debt.