Hey @kellyr2, great to see you again. We can have this done with some easy steps.
If the invoices you send in QuickBooks become uncollectible, you can record them as a bad debt and write them off. This way, it ensures your accounts receivable and net income stay up-to-date. Here are the steps to write off invoice balances.
To start, create an expense account and create bad items as a placeholder for the unpaid invoices.
Next, make a credit memo and apply it to the invoice. Follow these steps:
- Go to the + New button.
- Click Credit memo.
- Select the customer from the Customer ▼ dropdown.
- In the Product/Service section, select Bad debts.
- Under the Amount column, enter the amount you want to write off.
- And in the Message displayed on the statement box, enter Bad Debt.
- Select Save and Close.
These are the steps to apply the credit memo to the invoice:
- Go to + New.
- Under Customers, select Receive payment.
- From the Customer ▼ dropdown, select the appropriate customer.
- Under the Outstanding Transactions section, select the invoice.
- From the Credits section, select the credit memo.
- Select Save and Close.
You may visit this article as your reference when you reconcile an account to ensure your accounts in QBO are balanced: Reconcile an account in QuickBooks Online.
If you have any further concerns about your transactions, please don't hesitate to post them here. Have a great day!
