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Write off bad debt in QuickBooks Desktop
by Intuit• Updated 3 months ago
Learn what to do if you can’t collect money from a customer and need to write it off as bad debt in QuickBooks Desktop.
When invoices you send in QuickBooks Desktop become uncollectible, you need to record them as a bad debt and write them off. This ensures your accounts receivable and net income stay up-to-date. If you’re using QuickBooks Online, here’s how to write off bad debt.
Tip: Stay on top of your customers' open balances with the Accounts Receivable Aging Detail report. |
Step 1: Add an expense account to track the bad debt
- Go to the Lists menu and select Chart of Accounts.
- Select the Account menu and then New.
- Select Expense, then Continue.
- Enter an Account Name, for example, Bad Debt.
- Select Save and Close.
Step 2: Close out the unpaid invoices
- Go to the Customers menu and select Receive Payments.
- Enter the name of the customer in the Received from field.
- For Payment amount, enter $0.00.
- Select Discounts and credits.
- In the Amount of Discount field, enter the amount you'd like to write off.
- For Discount Account, select the account you added in step 1, and select Done.
- Select Save and Close.
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