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As a part of your business, sometimes you may have met customers who refuse to pay for the products or services that your business sells.After you have tried all the possibilities to take the payment from your non-paying customer, you may have called them, emailed them, charged late fees, etc.After all this, you realize that they are not going to pay. In this case, you can write this off as Bad Debt and get the sale off of your books by these simple steps.Here you will get about How to Write Off Bad Debt in QuickBooks online. You can also call on our QuickBooks support number to get the instant solution and to know more about any of the errors of QuickBooks online.

How do I inscribe Off Bad Debt?

Here is the complete guide to write off bad debt in QuickBooks online. Perform it wisely to overcome your problem.

Analyze the aging report for the Accounts Receivable

This is the first thing that you have to address prior to write off bad debts in QuickBooks Online. Cautiously review your Accounts Receivable Aging Detail Report. Here’s how you perform it.

To open the Reports section, use the left side menu.

Go to the Search bar.

Key in Accounts Receivable Aging.

Choose the Accounts Receivable Aging Detail Report. This will display all your accounts receivable.

Create a new account for bad debts

You will have to make an expense account.

Hit the Gear icon from the Toolbar.

Go to the“Your Company” option.

Choose “Chart of Accounts”.

Hit“New”.

Click on the Account Type, from Accounts notification.

From the pop-up menu that opens, choose Expenses.

You will see a pop-up menu for Detail type. In that menu, click on Bad Debts.

Write Bad Debts in the Name field.

Hit on the “Save” option and at last, click on Close.

Make a product item or a service item

Hit the Gear icon from the Toolbar.

Click on the “Lists” option.

Go to the Products and Services list.

Hit New.

From the pop up menu, choose the “Non-Inventory” option.

Write Bad Debts into the Name field.

Visit the Income Account field, and choose the newly created account.

Mark the checkbox for ‘Is taxable’.

Click on the “Save” option and then hit Close.

Draft credit card memo

Hit the Plus icon from the Toolbar.

From the pop up menu, choose“Customer” option.

Choose the afresh created bad debts to account from Products/Services field.

Write the amount and enter Bad Debt in the Memo field.

Click on the“Save” option and then hit Close.

Put in the credit memo

Hit the Plus icon from the Toolbar.

Tap on the Receive Payment, from the Customers tab.

From the options, choose the customer.

Access the Outstanding Transactions section to choose the invoices you would need to write off.

Under the Credits section, choose the newly created memo.

The amount that you have received has to be 0.00.

Click on the “Save” option and then Close.

Execute a report for the bad debts

Hit the Gear icon from the Toolbar.

Go to “Your Company” option.

Choose“Chart of Accounts”.

Navigate the account created for bad debts expenses.

Click on  the“Action” option.

From the pop-up menu that appears, click on the “Run Report” option.

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