I have invoices dating back to 2005 as unpaid, as the President has me send statements each month to the client. However, he has now decided to write this and 3 other client debts off that are never going to be received. We are on a CASH BASIS and I understand that you can't "write off" debt that was never accounted for as income. Therefore, I was going to create credit memos and clear them, but that requires that same amount be entered somewhere else in QBs. As I recall, we needed to "delete" these invoices in the past, keeping a copy of the original so we know what the transaction looked like, in case we do ever see money from them. So, I'm not sure why in a CASH BASIS I'd put a "Bad Debt" line on the P&L? Need an answer ASAP! Help and thank you in advance!
