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For anyone coming here later, Bad Debt is an expense account. Do not categorize it as income.
Bad debt is an expense account, not income.
exactly. This is not the correct way to account for bad debt unless it is a return of product, but then you use a credit memo against income. Bad debt should be down in G&A expense
If we code bad debt as income the quantity of item we sell will be less than usual so we can use bad debts as a expense for proper accounting
Thank you, really good explanation. Could you pls tell me how can I write off small balances for customers in QBO?
great explanation....thank you!!
Glad it was helpful! 😉
Excellent tutoring! 😊
Thank you! 😊
Thank you so much...
You're most welcome!
THANK YOU
Welcome!
Download the free QuickBooks Online Shortcuts Sheet ► www.simonsezit.com/quickbooks-online-keyboard-shortcuts/
For anyone coming here later, Bad Debt is an expense account. Do not categorize it as income.
Bad debt is an expense account, not income.
exactly. This is not the correct way to account for bad debt unless it is a return of product, but then you use a credit memo against income. Bad debt should be down in G&A expense
If we code bad debt as income the quantity of item we sell will be less than usual so we can use bad debts as a expense for proper accounting
Thank you, really good explanation. Could you pls tell me how can I write off small balances for customers in QBO?
great explanation....thank you!!
Glad it was helpful! 😉
Excellent tutoring! 😊
Thank you! 😊
Thank you so much...
You're most welcome!
THANK YOU
Welcome!