It is essential if you want to avoid issues with income statements. Profit and loss reports should be well balanced, and that is why to Write off Bad Debts in QuickBooks is of most importance. Your business can require a separate account for bad debt. For this reason, this different Account is essential. In the Name field, enter “Bad debts.” From the Income account drop-down, select Bad debts. Select Save and Close. Step 4: Create a credit memo for the bad debt. Select + New. Select a Credit memo or Give credit. Select the customer from the Customer drop-down. In the Product/Service section, select Bad debts. In the amount column, enter the amount you want to write off.
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