Hi I'm Aimee from Razor Accounting, the sharp
solution for your finances! In this quickbooks
desktop tutorial i'm going to show you how to write off uncollectible invoices
that are sitting in accounts receivable to bad debts
the first thing i'll show you is how to find these uncollectible invoices
using the accounts receivable aging report
then i'll show you how to do the write-off so let's get started
so the first thing i'm going to show you is how to view the accounts receivable
aging report to look for those overdue invoices so
we're going to go up to the top menu where it says reports
select the report center and in here you want to go over to the left menu
select customers and receivables and from there
you want to choose the ar aging summary in here you'll notice that this report
is separated into different columns based
on how old the invoices are now each company will have its own
accounting policies on how long an invoice is to be kept in
accounts receivable before it's written off
but in this case i will be writing off amounts that are in the column that's 90
plus days overdue in order to write an invoice off as a
bad debt you need to have a general ledger account set up called bad debt
expense if you don't have that i can show you
how to do that really quickly so what you need to do is go over to the
top menu where it says company go down to where it says chart of
accounts from here go down to the bottom where it says account
and use the drop down and you want to select
new in here you're going to be making a new general ledger account that
is an expense account so select expense and then select continue
the account name is bad debt
make sure you fill in the tax line mapping so you need to select the drop
down here and search for the account that says bad
debt
select that debt expense and once you're finished with setting up your account
select save and close
i'm just going to exit of this aging report
and now i'm back at the home screen so the next step is to go into receive
payments
and from here use the drop down to select an invoice that you're going to
be writing off
the next step is to go up to the tab that says discounts and
credits
and in the box that says amount of discount put in the amount that you will
be writing off
the discount account that this amount is going to be going to
is the bad debt account that you just set up or that you previously had in
your general ledger so use the drop down to select your bad
debt account and once you're done with that go ahead
and select done now you'll notice that there is a date
column here for your discount make sure that you
have the correct date that is coming from the date here so i'm
going to put in today's date
and you'll also notice over here that there is a column that says discount
so that is the amount that you will be writing off so take a quick
look over your entry here to write off the bad debt and make sure
everything looks good when you're finished
go ahead and select save and close or save a new to do another write-off
i'm just going to go ahead and select save and close
and then we're going to take a quick look at that ar aging detail report to
see how it's changed so i'm going to go up to reports report
center
under customers and receivables i'm selecting the
ar aging summary so you'll notice that the overdue balance for mr black
is no longer in this report because we have written it off
so that's all for this quickbooks desktop tutorial on how to write off
overdue invoices that are in accounts receivable
if you do have any questions about this please leave a comment on this video
and i will be happy to answer your question as quickly as i can
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you