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If my client's company was got scammed $2,500, how should I record that loss in quickbooks? Thanks!
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If the company got scammed for 2500, there is no bad debt, the money is gone.
Create an expense account called fraud expense
Since you did not say what the payment was for, you will have to make the decision in the journal entry
debit fraud expense
credit the account that the fraud payment was used for
explain in the memo block
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Hello there, Ethan Zhou.
There are times when a supposed income becomes a loss, you can write off bad debts in recording them. This way, the invoices will be cleared out and the net profit will be reduced.
These steps also have sub-steps, please refer to this article to see them: How to Write Off Bad Debt.
Also, I'd suggest consulting an accountant to be advised on how to record the scammed or loss amount.
I'd be right here if you need more help.