How To Write Off A Bad Debt In QuickBooks

Have a receivable you can’t collect on? Learn how to write off a bad debt in QuickBooks with Rhonda Rosand, CPA, Advanced Certified QuickBooks Proadvisor of New Business Directions, LLC.

2 Comments on “How To Write Off A Bad Debt In QuickBooks

  1.  by  Susie Sullivan

    I saw the video “how to write off a bad debt”
    I recently started helping at a company. The person they had doing their books did some things incorrectly. I understood and was able to follow this video. The invoice that I need to apply the bed debt to was from last year (2019). They never booked the bad debt in 2019. Now I’m trying to book it this year in 2020 but the message I get is “their are no open invoices”
    So I booked it anyway. Now, the customer’s A/R account shows -0- but the detail still shows the 2019 balance (2019 unpaid invoice) and also the offsetting (same amount) amount.
    This gets the A/R to zero like we want but I was wondering if you could help us ‘do it the right way’ by applying it the invoice.

    •  by  Rhonda Rosand

      Hi Susie,
      Thanks for reaching out. I’m guessing that the reason that you cannot apply the bad debt to the invoice is because the prior year is closed. Have the 2019 income taxes been finalized? If not, the bad debt needs to be dated the prior year and applied to the invoice.

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