I have some information that I want to share. This will guide you on what you're going to do to ensure you're doing the right thing, Audarah1.

When you account for your bad debts depends upon whether you use the cash or the accrual basis of accounting. If you use the cash basis, you recognize income only when a payment is received. With bad debts you simply never record the income that you were expecting to get.

Bad debt can greatly impact sales. You'll want to reach out to your accountant and double-check with them if zeroing the invoice amount using the two different accounting methods has implications for your sales tax. Your accountant possesses more deep accounting knowledge and understanding with a strong foundation that understands your concern and your business as well.

Additionally, QuickBooks Online (QBO) provides several reports that show the different aspects of your business. You'll only have to customize them to make sure you'll get the information you need most. I've added this article for more details: Customize Reports In QuickBooks Online.

I'm happy if I could do this right for you. You can always get back to us if you have any questions about bad debts. We're always right here to help you anytime. Have a great day ahead!