Accounting & Bookkeeping & Small Business Forum

[Guest]

I need to write-off some A/R in QB’s. If I do a high-level journal entry this will fix the problem but I will still see the “written-off” invoices every time I open that window or every time I run an A/R aging. How do I get rid of these invoices? Should I do the high-level entry and then do a Credit Memo and apply it to the invoices?

Thanks in advance.

Ernesto

[Guest]

Ernesto, mi amigo. Tu tienes una pregunta muy interesante. Funny you should ask this question. I just started working for a company that has about $1M of A/R of which about $800K is no good. They got around it showing up by changing their reports from ACCRUAL to CASH. No es bueno. Go to the Help Index in QuickBooks. Type in BAD DEBTS. It will walk you through writing off your A/R. There's several things you need to do. 1) Set up a Allowance for Doubtful Accounts account (Contra Asset) which will show up on your balance sheet as an offset to A/R. 2) Set up a bad debt expense account (you'll need this before you can start writing off bad debts in QB) which will be the offsetting entry to your Allowance account. You can come up with a monthly estimated right off based on history or percentage of sales. Good luck! I inherited bad debts going back too 2001 :-( Tengas una buena semana! Jack

[Guest]

Thanks a lot Jack.

(que tengas una buena semana tambien).

[Guest]

Great spanish class. Hasta la vista mi amigos.