Occasionally, you will find yourself in a situation where a customer doesn’t pay you despite your numerous efforts to collect. In accounting parlance this is called a Bad Debt.
This tutorial shows you how to write off bad debts from customers that you believe you will not be able to collect in QuickBooks Online and see the amount on the profit and loss report.

Table of Contents:

00:00 Introduction
01:15 Add Bad Debts to Chart of Accounts
02:11 Add Bad Debts to Items (Products and Services)
03:28 Review Accounts Receivable (AR)Aging
04:07 Set up Credit Memo
06:40 Offset Credit Memo Against Invoice
08:13 Review AR Aging Again

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You can also refer to my article that explores bad debts in greater detail:
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