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How to Write of Bad Debt in QuickBooks Desktop

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. And, to write of bad debts follow the steps discussed in this presentation.

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How to Write of Bad Debt in QuickBooks Desktop

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  1. How to Write of Bad Debt in QuickBooks Desktop

  2. 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.

  3. 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.

  4. In this presentation, let’s look at a few easy to follow steps for writing off bad debt.

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

  6. Create an account for bad debt.

  7. From the Lists menu, select Chart of Accounts.

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

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

  10. Assignthe appropriate account number and in the Account Name field, type Bad Debt.

  11. Click Save & Close

  12. Record the bad debt.

  13. From the Customers menu, choose Receive Payments.

  14. Select the name of the customer from whom you incurred the bad debt.

  15. Leave the amount field at 0.00.

  16. Click the line item that will not be paid to highlight it.

  17. Click Discount & Credits.

  18. Go to the Discount tab and in the Discount Account drop-down, choose the bad debt expense account created in Step 1.

  19. In the Amount of Discount field, enter the bad debt amount then click Done.

  20. Click Save & Close to record the payment.

  21. While following these steps for writing off bad debts, in case if you encounter any problems, then contact Quick At Support Now!

  22. Contact us Now? To know more about the QuickBooks Desktopoffered 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

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