Thank you for bringing this to our attention regarding the write-off of the account for credit memo. I'm here to help you with your concern about QuickBooks Online (QBO), aconroy@conroyas.

You're unable to directly assign a write off account on a credit memo in QBO. You'll have to create a service or non-inventory item first, and then assign a write-off account or bad debt account. Once done, generate a credit memo and select the service item you’ve set up.

Here’s how to create a credit memo for the bad debt: 

1. Click + New and select Credit memo.

2. Choose the customer from the Customer dropdown.

3. Select Bad debts in the Product/Service section.

4. Enter the write-off amount in the Amount column.

5. Add Bad Debt in the Message displayed on the statement box.

6. Finally, click Save and Close.

For more details on how to write off bad debt in QuickBooks Online, check out this article: Write off bad debt in QuickBooks Online.

In addition, check out this article to learn how to set up and add accounts to your chart of accounts: Add an account to your chart of accounts in QuickBooks Online.

If you have further questions about the credit memo not letting you choose write-off in QuickBooks, please ask me. I would be here to assist you at any time.