Accounts Receivable Clean Up
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?
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.