How to Write Off Bad Debt in QuickBooks Online

[@SimonSezIT]

Download the free QuickBooks Online Shortcuts Sheet ► www.simonsezit.com/quickbooks-online-keyboard-shortcuts/

[@machinevideos8654]

For anyone coming here later, Bad Debt is an expense account. Do not categorize it as income.

[@jaynefranzinoromero5877]

Excellent tutoring! 😊

[@SimonSezIT]

Thank you! 😊

[@juantobon2424]

great explanation....thank you!!

[@SimonSezIT]

Glad it was helpful! 😉

[@maharajan4196]

If we code bad debt as income the quantity of item we sell will be less than usual so we can use bad debts as a expense for proper accounting

[@anaacosta3970]

Thank you, really good explanation. Could you pls tell me how can I write off small balances for customers in QBO?

[@azhideh]

Thank you so much...

[@SimonSezIT]

You're most welcome!

[@themeditationshaman815]

Bad debt is an expense account, not income.

[@MichelleBoyer-k4p]

exactly. This is not the correct way to account for bad debt unless it is a return of product, but then you use a credit memo against income. Bad debt should be down in G&A expense

[@Shane-rn3bp]

THANK YOU

[@SimonSezIT]

Welcome!