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Glad to have you here in the Community, bookkeeperae.
I'm here to guide you on how to record payments in QuickBooks Online.
Bad debt means a customer owes you money but you can't collect it. They have a debt with you, but you know you aren't going to get paid. You need to delete the bad debt that you created.
1. Open the Bad Debt that you created.
2. Click the hyperlink under Payment Status to open the transactions.
3. Select Delete.
4. Select Save and Close.
I've got you an article on how to write off bad debt in QuickBooks Online.
Keep your post coming if you need more help. Have a great day!
I have a similar situation, but in my case, the customer had a credit balance for over a year.
Finally, in 2020, the company wrote the credit off to bad debt. Now, the customer wants a refund. The customer was offered a discount for the amount of the credit, but would prefer a refund.
What is the best way to handle this?
I can help you with recording a refund for the customer's credit balance, @AnneB8.
You can write a check for the amount to be refunded and then a credit memo for the amount of the credit. Once done, process a receive payment by linking the check and the credit memo
To create a credit memo:
To write a check:
Now, link the refund to the customer's credit or overpayment:
You can refer to the following article for more information to record a refund based on various scenarios to ensure your books are accurate: Record a customer refund in QuickBooks Online.
In case you'd like to send your customer a summary of their invoices, payments, credits, and balances. See the following article for detailed guidance: Create and send customer statements in QuickBooks Online.
I'll be here if you have any additional questions in recording your transactions or if you need anything else. Just let me know by leaving a reply below. Take care and have a great day!