We have a customer that owes us $18k and they are also a supplier that we owe $10k. Their debt is going to be written off as a bad debt. How do I balance this?

Hi there accounts100,

It's vital that all your transactions are correctly entered so that your books can be well balanced. QuickBooks Online is a great tool able to help you keep track of sales and expenses so you can see the profit of your company. I can point you in the right direction for assistance with these transactions.

In order to write off the difference left over after canceling out the invoice and bill, you can follow this guide about how to write off bad debt in QuickBooks Online. In order to cancel out the balances owing from the supplier and customer, you may need to create some form of a journal entry. In order to know which accounts should be chosen, as well as how to create this transaction so your books can be well balanced, I recommend speaking to your accountant. They'll be able to guide you in the best choice of accounts to affect in order for your account totals to reflect the correct amount. You can invite your accountant to your books in the My accountant tab. There's also a Find a pro to help button in this section that can help you find a local accountant that has experience with QuickBooks Online.

If you have any other questions, feel free to reach out here.