How does a credit memo reflect bad debt written off in QuickBooks

QuickBooks Help QuestionsHow does a credit memo reflect bad debt written off in QuickBooks
Sherilyn H. asked 9 months ago

How does a credit memo reflect bad debt written off in QuickBooks? In the Customer Center transaction details, it just looks like the customer paid when they did not.

admin Staff replied 9 months ago

Unfortunately, if you are removing a customer receivable from the open invoice list account then you will need to create a credit memo in QBO. They don’t have offer good alternative method to writing off bad debt. It’s true it’s going to look like they actually paid the invoice no matter how it’s done in QuickBooks. The workaround is to reference the credit memo number for bad debt as BD1000 for example and also leave a note on the transaction itself.


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