I have a customer that has passed away. How to I properly clear the balance on the account as it is now uncollectable?

@chameleonpropert 

If you're on accrual basis, create a service item called "Bad Debt Expense" and assign your Bad Debt Expense account under 'Income account' in the item set-up.  Then, create credit memo(s) and select the newly-created Bad Debt Expense service item for the balance due on the uncollectable invoices.  Then, apply the credit memos to the open invoices.  That will book the bad debt expense that will offset the income from the uncollectable invoices.

If you're on cash basis, zero out the invoices and make a note on them as to why they were not paid.