How to write off bad debt in QuickBooks?
Bad debt
means that you have given some amount of money to your customer but you can’t
collect it now. The amount already debt from your side, but know you aren’t
going to get paid for the amount. If your business uses accrual method of
accounting, than you can mention write off
bad debt in QuickBooks as a deduction. You need to record them as a bed
debt and write them off. This ensures your accounts receivable, so that the net
income get update with the bad debt.
Method 1: To check accounts
receivable.
You can use
the Accounts Receivable Ageing Details report for the bad debt in your
business.
1. Select the Reports menu.
2. Check out for the Accounts Receivable Ageing Detail report.
3. Select which outstanding accounts
receivable should be written off.
Method 2: Create a bad debts expense
account.
You can to
create a “bad debts” expense account by following the given steps below. If you
have it, you can leave the step.
1. Go to Settings option and select Chart of
Accounts.
2. On the upper right, select New to create a new account.
3. Select the Account Type dropdown, choose Expenses
option.
4. Select the Detail Type dropdown, choose Bad
debts option.
5. Select Save and Close.
Method 3: Create a bad debt item.
Create a non-inventory item as a file for the bad debt. This
isn’t a real item, it’s just to balance the accounting.
1. Go to settings option and select Products and Services.
2. On the upper right, select New, and then Non-inventory.
3. Enter “bad debts” in the Name field.
4. Select the Income account dropdown, choose Bad debts.
5. Select Save and Close.
Whereas, if you need any sort of technical assistance or if you want our team to answer any of your queries, then do not think much in dialing our toll-free number +1(844)405-0907. We are a team of technically sound QuickBooks professionals, who work round the clock to provide immediate technical assistance. Thus, do not hesitate in calling us anytime.
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