How to write off bad debts in QuickBooks Desktop and Online?

Bad debts are uncollectible debts that you won't receive in the future. When it comes to QuickBooks, bad debts are essentially invoices that become uncollectible over time. Writing off bad debts makes it easier for companies to record actual profits and sales. Users can write off bad debts as deductions in QuickBooks. Additionally, by creating a bad debt account, you will be better acquainted with different types of bad debts and unpaid invoices. Check out this section to learn more about the steps required to write off bad debts in QuickBooks Online and on your desktop. Alternatively, please contact our technical support team at +1-844-499-6700. We provide prompt support and assistance.

Steps to Write Off Bad Debts in QuickBooks

If you are a QuickBooks desktop user, you can follow these steps to successfully write off bad debts in QuickBooks.

Step 1: Create a Bad Debt Account

·         You must first open QuickBooks and then go to the Settings tab.

·         Next, click Chart of Accounts in the options list.

·         The next step is to select New to create a new account.

·         Also, click the Expense Account option from the Account Type drop-down menu.

·         Now you have to click on the “Bad Debts” option.

·         Next, click the Save and Close tabs.

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 Step 2: Settle outstanding invoices

·         At this point, simply open the customer menu and go to Receive Payment.

·         The next step is to enter the customer's name in the Recipient field.

·         Enter $000 in the Payment Amount field and go to Discounts and Credits.

·         You must enter a value to amortize in the Cash Discount Amount field.

·         Once completed, for Discount Accounts, select the account you added in the previous step and click Finish.

·         The last step is to select Save and Close.

Conclusion:

Towards the end of this section, assume that the reader can successfully write off bad debts in his QuickBooks using the steps above. However, if you have any questions or require technical advice, we encourage you to contact our technical support team at +1-844-499-6700. We are a team of certified QuickBooks consultants and he is available 24/7 to answer all your QuickBooks questions.

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