Sales > Accounting for bad debts
Before writing off a bad debt, create a Bad Debt expense account in your accounts list. For more information, see Set up accounts.
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In the Description field, type a description of the transaction.
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In the Acct No. field, type or select the account for Bad Debts.
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If you account for bad debts by posting a provision to an asset account (for example, the Provision for Bad Debts asset account), you can select that account.
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In the Amount field, type the bad debt amount as a negative number.
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In the GST field, type or select the required GST code.
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Click Record.
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In the Settle Returns & Credits window, apply the credit against the customer’s original open invoice. To do this, see Customer credits.
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