How Do I Write off Bad Debts in Accounts Receivable?

How Do I Write off Bad Debts in Accounts Receivable?

Release Date: 05/17/2024
Version: 7.x & Up

Q - How do I write off bad accounts receivable?


A - The easiest way is to use a process from AR Cash Receipts Processing.

In the example below, you are writing off invoice # 500310, The invoice amount is $50.00 for customer # 100. Here are the key fields to enter:
  1. Check Amount = 0
  2. Amount Paid = 0
  3. Allowance = $50.00 (same as invoice balance)
  4. Change allowance account to Bad Debt Expenses (e.g., 5260-00000-00000)
See sample screen below:




RSS/EMK

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