How to Write Off Bad Debts in QuickBooks Desktop?

Are you looking for a guide to write off bad debts in QuickBooks desktop? Well, if yes, then this piece of information will work wonders for you. A bad debt is an amount that a business or a company is unable to recover from the debtor in case the borrower has gone bankrupt or is unable to pay the debt for some reasons. It should be noted that debt issues can severely affect the profit and loss reports while reconciling the accounts in QuickBooks. Bad debts are related to the account receivables, and should be written off in order to clear the invoices from the account receivables that in turn helps in getting the correct net profit amount in QuickBooks.

In this post, we will be learning the process to write off bad debts in QuickBooks. To know more, read the post ahead carefully or make a call at 1-844-405-0906, and let our team perform the required steps.

Steps to write off bad debt in QuickBooks desktop

The user can write off bad debts in QuickBooks, using the below steps:

Examine the A/R Aging report

• For this, the user needs to click on the reports section from the left side panel in QuickBooks
• And then, the user will have to search for the account receivable aging report from the search bar at the top
• The last step is to view the outstanding receivable account, by clicking on the accounts receivable aging detail report

Setting up a service/product bad debt item

• Under this method, the user needs to click on gear icon and also choose product and services from under the lists section
• And then, the user needs to select the option of product and services from under the list section
• After that, click on the new product and then from the product/service information section click on the non-inventory option
• The next step is to type bad debt inside the name text box
• Also, choose the bad debt expenditure that you have created in the income account section
• Followed by unmarking the Is taxable checkbox
• The last step is to click on the save and close option

Once the above stated steps are followed properly, the user will surely be able to write off bad debts in QuickBooks desktop successfully. However, in case any of your query remained unanswered or if you need any assistance throughout the process, then in that case, feel free to get in touch with our team at +1-844-405-0906.
 

QuickBooks accounting software offers tons of features, one of which is email services. Sending mails directly from QuickBooks saves a lot of time, effort. To avail the benefits of email services in QuickBooks desktop, one needs to set it up and also configure the same. Setting up email in QuickBooks desktop permits the user to send invoice to clients, send and receive reports, and also carry out transactions from QuickBooks desktop via outlook or webmail id. If you are also in search of a guide to setup and configure email services in QuickBooks desktop, then reading this post till the end would surely work.

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