Accounts Recievables

Thank you for reaching out to us about your customer balance, Thassell. I completely understand how dealing with uncollectible balances can be concerning, especially when it involves a large amount. Rest assured, I can guide you through the best way to handle this situation in QuickBooks Desktop (QBDT).

When you send invoices that ultimately become uncollectible, it’s necessary to record them as bad debt and write them off. It ensures that your Accounts Receivable (AR) reflect only the amounts you can realistically expect to collect.

First, add an expense account to track the bad debt. I can guide you on how:

1. Go to the Lists menu and select Chart of Accounts.
2. Select the Account drop-down arrow and then New.
3. Click Expense, then Continue.
4. Enter the Account Name.
5. Select Save & Close.

After that, close out the unpaid invoices.

1. Go to the Customers menu and select Receive Payments.
2. Enter the name of the customer in the Received From field.
3. Put $0.00 in the Payment Amount.
4. Select Discounts and credits.
5. Set the amount you want to write off in the Amount of Discount field.
6. Choose the bad debt you added in Step 1 for the Discount Account.
7. Tap Done.
8. Hit Save & Close.

Refer to these articles to learn more about running an A/R Aging report and how to write off uncollectable balances:

• The AR balance on the Chart of Accounts does not match the AR balance on the reports
• Write off bad debt in QuickBooks Desktop
• Understand reports

Additionally, visit these links that will guide you on how to handle customer and vendor credits:

• Give your customer a credit or refund
• Record a vendor refund

Again, thank you for reaching out regarding the uncollectible balance in your Accounts Receivable. Tag my name in the comment below if you have more questions about your uncollectible balances. We are always here to support you and ensure your QuickBooks experience runs smoothly.