Trying to apply a Credit note to an unpaid invoice (bad debt) - for QB online but there doesnt appear to be anywhere to apply a specific credit note to a specific invoice

Thanks for reaching out to us, cc3.

I appreciate the steps you've taken applying a Credit Note to bad debt. I'm here to help you out with this.

This can happen when the Automatically apply credit feature in QuickBooks Online is turned on so the Credit note might have been automatically applied to a different invoice. This is why there isn't a Credit section available. Let's check if this is the case.

To turn off Automatically apply credit:

1. From the Settings icon, select Accounts and Settings.
2. Select the Advanced tab.
3. In the Automation section, click the pencil icon.
4. Uncheck the Automatically apply credits box.
5. Click Save, then Done.

This should get you back on track. 

I'd appreciate it if you'll update me by commenting below. I want to make sure this is taken of. If you have any other concerns, you can always post them anytime here. I'll be sure to help.