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gloriadeb204
April 9, 2021
Solved

bad debt write off

  • April 9, 2021
  • 2 replies
  • 23 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!

    M
    MarcelleW
    December 9, 2021

    I followed steps 1-2 but in Step 3, I do not see "Discounts and Credits" button anywhere on the screen

    C
    Candice14
    Level 8
    December 9, 2021

    Good afternoon, @MercelleW. 

     

    Thanks for chiming in on this thread. Allow me to point you in the right direction to get this fixed. 

     

    Since you're unable to find the "Discounts and Credits" button, I suggest contacting our Customer Support Team for further assistance. They'll be able to walk you through the steps with a screen share tool. Here's how: 

     

    1. Go to the Help menu. 
    2. Press the QuickBooks Desktop Help option. 
    3. Tap the Contact Us hyperlink. 
    4. Give a brief description of the problem and click Let's talk. 
    5. Scroll down and choose to Get a callback.

     

    It's that easy! 

     

    Keep us updated on how the call goes. I'm only a post away if you need me. Take care! 

    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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