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TIPS & EXPERT ADVICE ON ESSAYS, PAPERS & COLLEGE APPLICATIONS

Overview

QuickBooks is the accounting software which
manages all the accounting issues and task easily. It contains easy to handle
features in which one is ‘write off bad debt’ or ‘non-collectable invoice’. The
condition of writing of bad debt is arisen when your customers refuse to pay
for the services / products that your business sales instead of sending emails,
charged late fees, mailed due statement, etc. Then you write this record as bad
that and get the sale off your books.

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Steps to write off bad debt

1: Users need to set up account and items

• On a QuickBooks ‘chart of accounts’,
users must set up a ‘new’ expense account for bad debt.

• Then click ‘list’ under Menu option to
create a ‘new account’.

• After that select ‘chart of account’ and
then click on the ‘account Menu’ option and select ‘new’.

• Now you need to create a ‘new expense
account’ or ‘bad debt’.

• Then set up QuickBooks items for
invoicing purposes.  Proceed with
items/list option, use drop down option to select ‘new
item’.

• Then select another ‘charge’ as the type and
assign them as bad debt. Select ‘taxable’ or ‘non- taxable’ as per transaction
and choose bad debt as the account.

2: create credit memo

• First go to ‘customer centre’ and click to
select ‘create a
credit memo’ and ‘refunds’ for the account that you are unable to
collect.

• Type the ‘customer’ details and date to
write on
the invoice, leave the credit member number.

• Then select ‘bad debt’ line item as
‘taxes’ (if business tracks Sales Tax is payables), otherwise assigned it as
non taxable.

• In the description box, I’d like to
reference the invoice number where writing off, however, it makes it easier to go
back, in case you need quickly reference what invoice number you write off by
put ‘unable to collect invoice #…’.

•Then offset the credit memo against the invoice
that needed to be return off.

•While you save the credit memo a message
popup you for reading the credit, issue a refund or applied to an open invoice.

•Click to select apply open invoice and
offset the credit memo.

Conclusion

In case if QuickBooks users having trouble
while performing the above-mentioned steps or any problem regarding the setup, then QuickBooks
provides its users 24/7 online customer care support through toll free number
1-800-446-8848 or buy online chats.

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