How to Write Off Bad Debt in QuickBooks Desktop & Online?
"Bad debt" is the amount that an organization is unable to collect from a debtor because he or she has declared bankruptcy or is otherwise unable to pay. Although QuickBooks provides the opportunity to reconcile accounts, debt may significantly affect a company's income. Bad debts or unrecoverable accounts are frequently connected to accounts receivable. This article shall brief users with comprehensive procedures to write off bad debt in QuickBooks Desktop . Need to write off Bad Debt Financial businesses are obligated to keep track of bad debts since they frequently sell on credit. Debts that are unpayable must be written off. You may acquire the precise net profit number by removing invoices from account receivables in the QuickBooks Desktop application by writing off bad debts. Procedure to Write Off Bad Debt in QuickBooks Desktop Step 1: Add Expense Account Choose Chart of Accounts from the Lists menu. After that, select New from the Account menu. Tap on Continue