I'm here to help share how you're able to clean up your report, @VK-EA-IL.
You're on the right track, the bad debt expense and credit memo method is the best way to clean up your Aging Accounts Receivable report. And you'll have to make sure the date of both the invoices to write off and the offsetting entries are the same so it won't carry over on your Profit and Loss this year.
Also, I highly recommend contacting your accountant or a bookkeeper who you can work with in handling your reports and for the accuracy of your accounting books. If you haven't yet, you can use this link to find someone near you: Business is better with a ProAdvisor.
I'm adding a couple of articles below that'll allow you to dive in deeply and understand your report:
Don't hesitate to post again here if you have other questions or concerns with QuickBooks reporting and navigations. I'm always around happy to help. Stay safe and have a good one!
