Hi everyone, If the unpaid loan is already beyond the statute of limitations, should we remove it from the books? If yes, how do we write it off?
Thanks for the help!
I would write it off
Assuming the loan was made to others, and sits in an asset account, a journal entry will do it.
Debit Bad Debt Expense and credit the loan account for the total in the loan account
The loan I meant is the company's debt. When writing this off, this will be credit to Other Income, right?
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead. For more information visit our Security Center or to report suspicious websites you can contact us here
