@ suzette

The article reference by the intuit rep, sort of work, but bypasses reporting - I suggest you do not use it

create a non inventory item named bad debt, and select a bad debt expense account on the non inventory item screen (create the bad debt expense account first if you need to)

create a credit memo for the customer, use that bad debt item, enter the amount, save

in receive payments, select the customer, the invoice and apply the credit memo, save