If my company lent money to another company which subsequently went bankrupt, so this loan can never be collected, how do I write this off?

Hi there, 

QuickBooks Online is equipped to handle unexpected business situations that require unique bookkeeping methods to record. If your company has incurred an expense by way of a loan that will never be repaid, you can record this as bad debt. I'll explain more about what that is and how to record bad debt transactions in QuickBooks Online.

Bad debt means a customer (in your case another business) owes you money but you can't collect it. They have a debt with you, but you know you aren't going to get paid. If your business uses accrual method accounting, you can sometimes write off bad debt as a deduction.

Note: It's always best to consult with your accountant to confirm whether this method is right for you and your business. If you're not already connected to an accountant, find one in your area here: Find an accountant.

To see the steps for recording bad debt in QBO, check out this helpful Community article: Write off bad debt in QuickBooks Online. Depending on how you recorded the initial loan, this may or may not be suitable to your circumstances. If you need to use a different method, please reach out to our tech support team for account-specific assistance. 

Cheers.