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AnneB8
Level 3

Forgiveness of Debt

Hello,

How do you record forgiveness of debt in QBO?  A vendor decided to forgive a bill that was due.

The accrual basis accounting is used.

 

Thank you.

1 Comment 1
Rustler
Level 15

Forgiveness of Debt

Create a vendor credit memo, use Other Income as the account.  Then apply the CM to the bill.

 

With few exceptions, debt that is forgiven is income.

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