Thanks for getting back to this thread, @KAJH.

Yes, that's what my colleague Adrian_A is referring to. 

Once you delete the bad debt, this will increase your Accounts Receivable (A/R) balance. This won't affect your taxes as long as the Tax column box in your line item (invoice) was unchecked. 

Please take note that if your apply the payment to your open invoice, this will reduce your A/R but will increase your bank's balance. 

To know more about writing off bad debts, you can check out this article: Write off bad debt in QuickBooks Online.

If there's anything else I can do for you, please let me know. I'm always here to help you out. Keep safe.