Other questions

You'll want to write them off as bad debt, Txroofer.

Writing off a bad debt ensures your accounts receivable and net income stay up-to-date. This is when you're unable to collect the fees.

Let me show you how it works in QuickBooks Desktop:

Step 1: Add an expense account to track the bad debt

1. Click Lists on the menu.
2. Select Chart of Accounts.
3. Select the Account menu and then New.
4. Select Expense, then Continue.
5. Enter an Account Name, for example, Bad Debt.
6. Select Save and Close.

Step 2: Close out the unpaid invoices

1. Click Customers menu.
2. Select Receive Payments.
3. Enter the name of the customer in the Received from field.
4. For Payment amount, enter $0.00.
5. Select Discounts and credits.
6. In the Amount of Discount field, enter the amount you'd like to write off.
7. For Discount Account, select the account you added in step 1, and select Done.
8. Select Save and Close.

You'll want to run the  Accounts Receivable Aging Detail report after to check the customer's open balances.

Let me know if you need anything else.