We have a customer that is not going to pay their invoices because the customer filed for bankruptcy. How do I reconcile the invoice in Quickbooks?

create an expense account called bad debt if you need to

create a non inventory item for bad debt and link that expense account on the item screen

Use that item on a customer credit memo for the total amount

In receive payments apply the credit memo to the outstanding invoices

Hey There!

Follow these detailed instructions in our community article and let me know if you have any further questions! --> https://quickbooks.intuit.com/community/Help-Articles/How-to-write-off-bad-debt/td-p/187834