Bad debts are basically unrecoverable debts that won’t be received in future. In terms of QuickBooks, you can say that, bad debts are basically invoices that have become uncollectible over the course of time. Writing off bad debts makes it easy for the businesses to record the actual profit and revenue. A user can write off bad debts in QuickBooks as deductions. Moreover, you can get acquainted with all different types of bad debts and unpaid invoices upon creating a bad debt account. To learn further about the steps involved in writing off bad debts in QuickBooks online and desktop, stick around this segment carefully. Or you can also consult our technical support team at +1-844-499-6700, and we will provide you with immediate support and assistance.
Steps to write off bad debts in QuickBooks
If you are QuickBooks desktop user, the following steps can be performed to write off bad debts successfully in QuickBooks. Let us have a look:
Step 1: Creating a bad debts expense account
- You need to first open QuickBooks and then move to the settings tab.
- After that, click on chart of accounts from the list of options.
- The next step is to select new to create a new account.
- And also, click on expense account option from the account type dropdown.
- You now have to click on the bad debts option.
- And then click on the save and close tabs.
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Step 2: Closing out unpaid invoices
- Here you need to simply open customers menu and head to the receive payments.
- The next step is to enter in the customer’s name in the received from field.
- Now, in payment amount space type in $0.00 and head to the discounts and credits.
- You now have to enter in the value that is to be written off in the amount of discount field.
- Once done with that, for discount account, select the account you added in the previous step and click on done.
- The last step is to choose save and close.
Conclusion!
Towards the end of this segment, we believe that the reader might be able to write off bad debts in QuickBooks successfully using the set of steps enumerated above. However, if there is any query or if the user needs any sort of technical guidance at any point in time, then in that case consulting our technical support team at +1-844-499-6700 is suggested. We are a team of certified QuickBooks Proadvisors who work round the clock in answering all your queries related to QuickBooks.
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