This is one of the important aspect of an accounting transactions that Quickbooks has made easier for small business to handle.

Bad debts are debt that are deemed to be noncollectable or irrecoverable. After all, you have explored many means of recovering your money, just that from the way things are, you know it is not recoverable and have decided to write them off.

To record bad debt in Quickbooks, there are two methods of writing off bad debt:

First, you can instantly use General Journal Entries in Quickbooks - Debit Bad Debt Account and Credit Debtors Account.

On the Quickbooks menu, Click Company and Select General Journal Entries:




On the General Journal window, Select Bad Debt and Debit Amount, Select Account Receivable and Credit the Amount.


Always remember to select the name of customers that is specifically involved in bad debt transactions.

Click Save and close to write off the bad debt.

The Second method is to Click Receive Payment on Quickbooks homepage.


A Receive Payment Window appears like this:


Click Discounts And Credits



On the above window, you will see the amount due for payment.
Amount of Discount: Enter the Amount recognized as bad debt.
Discount Account: Select Bad Debt from chart of account.

Click Done to record the bad debt written off.

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