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Chapter 4. Invoicing and Collecting Income > Recording Bad Debts - Pg. 122

Invoicing and Collecting Income 122 Recording Bad Debts If your company keeps records on an accrual basis, you've already recorded income when a job is completed and invoice, even though you haven't yet received the payment from your customer. So when you discover that the customer isn't going to pay, you need to offset the income you recorded with a bad debt expense. Record Bad Debts 1. Select Receive Payments from the Customers menu. 2. Enter the name of the customer and job, if applicable, for whom you will record a bad debt. 3. Leave the amount set to zero. 4. Click to place a checkmark to the left of an uncollectible invoice. 5. Click OK in the warning box. 6.