When an amount that was in a lucrative form and was supposed to be obtained from a customer fails to be recovered in any organization, it is referred to as a bad debt. Bad debts are bills that have become unrecoverable over time for users of QuickBooks Desktop. When bad debts have been written off, a company may better measure its profitability and average net turnaround. Yet, if the data are handled and stored manually without the help of accounting software, the procedure can become tedious.

When invoices sent through QuickBooks become uncollectible, they must be recorded as a bad debt and written off. This keeps your accounts receivable and net income current.

Step 4: Generate a Credit Note to cover the bad debt.
Select + New is an option.
Choose Credit Memo.
Choose the customer from the Customer dropdown.
Tap on Bad Debts in the Product/Service column.
The Amount area is where you should enter the sum you wish to deduct.
Enter “Bad Debt” in the Message printed on the statement box.
Choose Save and Exit.
Step 5: Add the Credit Memo to the Invoice Choose the + New option.
Next click Customers, Receive payment.
From the Customer menu, pick the pertinent client.
Under the Outstanding Transactions column, choose invoice.
The credit note can be selected in the Credits section.
Choose Save and Exit.
Step 6: How to get a Debt Report
With an Account QuickReport, you may see all of the receivables you identified as bad debt.
Follow the given step to get a bad debt report
The chart of Accounts may be found in the Settings menu.
Choose Run report from the Action column of the bad debts account. More steps to Write Off Bad Debt in QuickBooks Desktop accounting software.