How to Write Off Bad Debt in QuickBooks Desktop?

Finishing off a certain task can be hard in this case writing off bad debt can be a hard task in QuickBooks desktop. However, this article is here for your support to help in the write off bad debt in QuickBooks. The following article will elaborate upon what does writing off bad debt in QuickBooks desktop mean and how to do it.

What is Writing Off Bad Debt in QuickBooks Desktop?

When you are running a business venture you ought to come across such pesky customers who refuse to pay the debts or you are unable to contact them, then, in that case, the debt that was taken by them becomes a bad debt and you need to dispose it off to create new space and to sort out accrual data (as it displays the payment that has to be received combined with payment received in net amount).

Also Read: QuickBooks Error 6209

How to Write off Bad Debt in QuickBooks Desktop?

You need to follow the below mention two-step solution to write off bad debt in QuickBooks desktop:

Step 1: Create an Expense Account for Tracking Bad Debt

1. Navigate to the Lists menu and choose Chart of Accounts.
2. Open the Account menu and select New.
3. Choose Expense, then click Continue.
4. Enter a name for the account, such as Bad Debt.
5. Click Save and Close.

Step 2: Write Off Unpaid Invoices

1. Go to the Customers menu and select Receive Payments.
2. In the Received From field, enter the customer’s name.
3. Set the Payment Amount to $0.00.
4. Click Discounts and Credits.
5. In the Amount of Discount field, input the amount to be written off.
6. For Discount Account, select the account you created in Step 1, then click Done.
7. Select Save and Close.

You will be further prompted that the selected invoice has been written off. Which simply means it will not appear anywhere in your balance sheet or accrual and will appear on your income sheet as a bad expense.

This will result in a reduction of your income as the amount was not received or you failed to receive the amount.

Conclusion:

Although it is easy to follow the article to write off bad debt in QuickBooks, there is a possibility that you might get stuck while following the mentioned methodologies, if that is the case do not hesitate and reach out the QuickBooks Desktop Support Number +1-888-905-3553.