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test32
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I wrote off $19,500 for bad debt for a client that went out of business and never ended up paying for services used.  My CPA is telling me it should be an expense and not be left in the balance sheet.  Currently it is a debit under an account i created "allowance for bad debt" 

Should i create another JE in the current year and credit bad debt and debit accounts receivable? 

 

Many thanks

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