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gloriadeb204
April 9, 2021
Solved

bad debt write off

  • April 9, 2021
  • 2 replies
  • 24 views

I wrote off a bad debt in ihe GJ as shown.

When I run an aging report, it shows up as a positive and a negative. How do I get it to not show up at all on an aging report? 

 

Best answer by AlexV

Hello gloriadeb204!

 

The reason why it shows positive and negative lines is because of the method you used, the journal entry. Let me show you how to properly write it off as bad debt.

 

Based on the screenshot, I'll assume you already have an expense account to track the bad debt. If so, proceed to these steps:

  1. From the Customers menu, select Receive Payments.
  2. Select customer in the Received from drop-down, and enter $0.00 in the Payment amount.
  3. Click the Discounts and credits button. 
  4. On the pop-up, enter the amount you'd like to write off in the Amount of Discount field.
  5. For the Discount Account, select the bad debt expense account.
  6. Tap Done, then Save & Close.

 

Once done, pull up the A/R Aging report again to verify.

 

Need more references on how to manage your business in QuickBooks Desktop? Check this link: QBDT All Articles.

 

Leave a reply below if you more of my help. I'll be here!

2 replies

AlexV
AlexVAnswer
Level 10
April 9, 2021

Hello gloriadeb204!

 

The reason why it shows positive and negative lines is because of the method you used, the journal entry. Let me show you how to properly write it off as bad debt.

 

Based on the screenshot, I'll assume you already have an expense account to track the bad debt. If so, proceed to these steps:

  1. From the Customers menu, select Receive Payments.
  2. Select customer in the Received from drop-down, and enter $0.00 in the Payment amount.
  3. Click the Discounts and credits button. 
  4. On the pop-up, enter the amount you'd like to write off in the Amount of Discount field.
  5. For the Discount Account, select the bad debt expense account.
  6. Tap Done, then Save & Close.

 

Once done, pull up the A/R Aging report again to verify.

 

Need more references on how to manage your business in QuickBooks Desktop? Check this link: QBDT All Articles.

 

Leave a reply below if you more of my help. I'll be here!

    peggylaughery
    May 14, 2024

    I'm writing off a bad debt but I do not have "Discounts and Credits". What do I do?

    S
    SarahannC
    Level 9
    May 14, 2024

    Hello there, peggylaughery.
     

    Let's figure out why you don't have a Discounts and Credits option. Then, perform the necessary steps to fix it.

     

    Before anything else, can you share the exact steps you've taken when trying to write off the bad debt? Can you confirm if you're using QuickBooks Desktop? 

     

    The Discount and Credit option is under the Main section after clicking the Receive Payment under the Customers menu. Please see the sample screenshot below.

     

    If the Discounts and Credits option is grayed out, it's because there are no open invoices when you attempt to receive the payment.

     

    However, if you don't see the said option even though there's an open invoice, let's make sure to update the program to the latest release. This way, you always get our newest security patches and bug fixes. The steps below will guide you through the process.

    1. Go to Help and select Update QuickBooks Desktop.
    2. Select Update Now, then Get Updates.
    3. Close and reopen QuickBooks to install the update again.

     

    In case it won't work, I recommend repairing your QuickBooks Desktop for Windows.

     

    Additionally, you can visit the following article: Managing Sales and Customers. This provides links on how to handle company income and resources for other customer-related concerns.

     

    If you have any specific questions, need troubleshooting assistance, or seek general guidance, the Community is always available to ensure your QuickBooks experience is seamless. 

    BigRedConsulting
    BigRedConsulting
    Level 15
    April 9, 2021

    This happens when the journal isn't linked to the invoice it's writing down. Same thing will happen if you record a Payment received transaction and don't apply it to invoices.

    To complete the transaction, open the Receive Payments window, select the customer, and then apply the outstanding credit to the open invoice(s).

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