what do you do with an Account Receivable that will not be collected?
I'll help you manage the Accounts Receivable balances that you're unable to collect, Dcoulombe.
We'll have to write off the open invoices and declare them as bad debt.
A bad debt is an expense that's also referred as uncollectible accounts. This is the result when you delivered items or provided services and the customer didn't pay the amount owed.
First, let's add the expense account to track the bad debt. Here's how:
Then, let's go ahead and close out the unpaid invoices. Here's how:
When you pull up the Profit and Loss report. The Bad Debt account will show with the invoice amount. Here's how:
Visit the Community if you have other concerns. We're open 24/7.
Whilst the suggested answer could work, it will not work for those that are VAT registered. You can create a credit note going to bad debts instead, this system may warn you that you are using an expense account but you can disregard that warning.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.