Saturday, February 4, 2023
dhgate
HomeFinanceHow to Write Off Bad Debt in QuickBooks?

How to Write Off Bad Debt in QuickBooks?

Your company can encounter issues with its debts in QuickBooks. These debts cab affect your profit and loss reports the company. The income reports also see an effect if the debts aren’t written off. So, the users need to write off the bad debt. By this, the invoices get emptied into the records, which provides the company with the exact profits it has created. Through this blog, we will explain how to write off bad debt in QuickBooks. Let’s start.

Also Read: QuickBooks Bank feeds not Working

How to Write Off Bad Debt in QuickBooks?

Following are the methods to write off bad.

Method 1: Check Your Ageing Accounts Receivable

You have to review other invoices that should be viewed as bad debt utilizing the Accounts Receivable Aging Detail Report.

  1. Firstly, go to the Business Overview and then choose Reports.
  2. Secondly, search and open the Accounts Receivable Aging Detail report. 
  3. Now, check with outstanding accounts receivable have to be written off. 

Method 2: Create a Bad Debts Expense Account

If the above methods don’t help in how to write off bad debt in QuickBooks, then you have to create a bad debt expense account. Here’s how

  1. Firstly, go the Settings and choose Charts of Accounts.
  2. Then, from the upper right, choose New to create a new account.
  3. Now, from the Account Type drop-down, choose Expenses
  4. Next, from the Detail Type drop-down, choose Bad Debts.
  5. After that, in the Name file, type Bad Debts.
  6. At last, choose Save and Close

Method 3: Create a Bad Debt Item

In the following method of writing off bad debt in Quickbooks, you have to create a non-inventory thing as a placeholder for the bad debt. It is not a real item, it will balance the accounting. Here’s how to do it. 

  1. Firstly, go to the Settings and choose Products and Services.
  2. Now, from the upper right, choose New and then Non-Inventory.
  3. Then, in the name field, type Bad Debts.
  4. Next, from the Income Account drop-down, choose Bad Debts.
  5. At last, choose Save and Close.

Finishing Up

With this blog, we try to help you with how to write off bad debt in QuickBooks. We mention three easy methods to write off bad debts. You can opt for any of the above methods which suit you. If you still can’t write off bad debts, contact our experts at QuickBooks support number+1-520-463-7633.

Eleena Wills
Hi, I’m Eleena Wills. Being a writer and blogger, I strive to provide informative and valuable articles to people. With quality, constructive, and well-researched articles, one can make informed choices. I cover a wide range of topics, from home improvement to hair styling and automotive.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments