Bad Debts

Thank you for tracing the bad debt item, cornerstonemgmtg. 

It could be that when you change the account, the Also update this account in historical transactions box was not checked.

You can go back to the item information page then toggle the account.  Here's how: 

1. On the Income account field, choose any income account. Then click Save and close. 
2. Go back to the Bad debt information page then choose the correct expense account. 
3. Add a check mark on the Also update this account in historical transactions box. 
4. Click Save and close. 

Add a comment if you need anything else. 

Wow! That worked!!!! Thank you SO much!!! 

Remember, you want to see Both.

"I get back to the invoices the credit memo was applied to and notice that the product/items have "Income" as the Income account."

Yes, the Invoice is the Income.

And the Credit Memo shows for what you linked that Product/service. They Net to 0.