What are the steps to follow to write off bad debt in Quickbooks

  • January 9, 2023 3:47 PM EST

    As compared to any other things, to write off bad debt in QuickBooks is one of the easiest things to do. There are simple steps that have to be followed. Let’s have a look at what all things have to be done in order to execute this process.

     

    • You will have to start by checking your agent account reversibility.

    • After this you will have to create a bad debt expense account for all those customers who have been doing it.

    • After that you need to put the bad items in that account so that QuickBooks is informed about it.

    • Next you need to create a credit memo for all the bad accounts.

    • Second lastly will have to apply for the credit memo to the invoice that you have given above

    • Lastly you will have to run the bad debt report.


    • 676 posts
    January 12, 2023 12:45 AM EST

    If you're using QuickBooks Desktop, here's how to write off bad debt.
    Step 1: Check your aging accounts receivable.
    Step 2: Create a bad debts expense account.
    Step 3: Create a bad debt item.
    Step 4: Create a credit memo for the bad debt.
    Step 5: Apply the credit memo to the invoice.
    Step 6: Run a bad debts report.

    Regards,
    Peter