Hello, @Gary-Unicomm.
Let's make sure to use an expense account when creating a bad debt. This way we can offset your accounts receivable on the Balance Sheet.
Here's how:
- Go to the Lists menu.
- Select the Chart of Accounts.
- Choose the Account menu, then select New.
- Click Expense, then Continue.
- Enter an Account Name, for example, Bad Debt.
- Click Save and Close.
Once completed, you can now close out any unpaid invoice.
- Go to the Customers menu.
- Select Receive Payments.
- Choose the customer from the Customer: Job drop-down.
- Enter the necessary information.
- Click Apply Credits.
- Hit Yes to confirm the changes.
- In the Apply Credits window, select the deposit from the Credits tab.
- Click Done.
- Hit Save & Close to save the invoice.
Once done, you can now review the A/R Aging report to double-check if the deposit with a negative amount already removed.
It'll be always my pleasure to help if you have any other questions with tracking your income and expense transactions. I'll be keeping an eye on your response.
