I'm trying to write off a bad non-customer loan, and can't find the complete set of steps for Quickbooks Desktop Pro 2018. The loan is set up as a current asset, and the lendee declared bankruptcy, so I need to write off the asset. I created a Bad Debt expense account, then I created a non-inventory Bad Debt product/service item linked to the Bad Debt Expense account. Then I created a credit memo but can't figure out how to apply it to an asset account. This is a non-cash transaction, I want to expense the entire amount of the loan but there isn't any sort of invoice associated--the loan was made to a non-customer.
