How to write off bad debt via A/R credit memo to a bad debt expense account? QBO will only allow an Income Account to be used in Product/Service.

Glad to have you join the Community forum, @TerryS54. 
 

Allow me to provide clarifications and proper steps on how you can write off a bad debt to an expense account in QuickBooks Online. 
 
When writing off a bad debt, QBO will only allow you to assign it to a bad debt expense account under a non-inventory item.

To create a bad debts expense account, here’s the proper way to do it: 

1. Go to Settings. 
2. Select Chart of accounts. 
3. At the upper right, select New. 
4. From the Account Type dropdown, select Expenses. 
5. From the Detail Type dropdown, select Bad debts. 
6. In the Name field, enter Bad debts. 
7. Select Save and Close. 
   
   

Moreover, to create a bad debt item, here’s how: 

1. Go to Settings. 
2. Select Product and services. 
3. At the upper right, select New, and then Non-inventory. 
4. In the Name field, enter Bad debts. 
5. Select Save and Close. 

For more detailed information, you can browse through this article: Write off bad debt in QuickBooks Online. 

 
In addition, you can check this article to guide you on how to run and manage reports accordingly in QuickBooks: Run reports in QuickBooks Online.  
 

If you have additional questions or concerns with writing off a bad debt or any other QBO features and processes, please let me know. I’m here to help you, @TerryS54. Take care.