Accounts Receivable Clean Up

by Debbie
(BC)

An accounts receivable has been sitting now for 1 year. I want to write it off as a bad debt.

How do I get it out of the accounts receivable and put into bad debt?

Thanks
Debbie

Hi Debbie,

There are two ways to book bad debt ... on a GAAP basis and on a tax basis. You will need to determine which method your set of books uses.

Take a look at my article on Common Bookkeeping Entries. It includes the bookkeeping entries to record a write-off of a bad debt on a GAAP basis.

At the very end of the section, you will see a link on how to book your entry in QuickBooks. But don't go directly there and just book your entry. Take the time to read and follow all the links on bad debt so you get a better understanding of what you are doing. It will help you learn how to think your way through a bookkeeping entry.