How to Write Off Bad Debt in QuickBooks 2024

How to Write Off Bad Debt in QuickBooks 2024

Write a bad debt in QuickBooks 2024, effectively managing critical for keeping correct financial records. If a "Allowance for Bad Debts" account does not already exist, create one. Use the Accounts Receivable Aging Detail report to discover overdue bills or accounts that are unlikely to be paid. Once identified, make a journal entry to record the bad debt expenditure. Debit the Bad Debt Expense account, then credit the Accounts Receivable account linked with the underpaid invoice.

Consider applying a credit memo straight to the customer's account to clear the overdue invoice. This strategy ensures that your books appropriately reflect the write-off while maintaining clarity in financial reporting. Maintain financial health by regularly reviewing accounts receivable and bad debts.