How to Write Off Bad Debt in QuickBooks Premier Contractor Edition 2021

As a contractor, dealing with unpaid invoices can be frustrating and affect your business's financial health. In this article, we will guide you through the steps to write off bad debt in QuickBooks Premier Contractor Edition 2021.

To start, highlight the line item that will not be paid. This will help you identify the specific invoice that needs to be written off. From there, go to the Customers menu and choose Receive Payments. However, if you only want to show the unpaid invoice as an expense in the Profit and Loss report, use the Discounts and Credits button to increase the balance in your bad debt account and decrease your net profit by the amount of the unpaid invoice.

Another option is to record a credit memo or refund in QuickBooks Desktop. To do this, go to the Customers menu and select Create Credit Memos/Refunds. Enter the items, then select Save & Close. This will clear the amount out from your accounts receivable and reduce your net profit.

If you want to apply the credit memo to a specific invoice, follow these steps: Go to the Available Credit window, select Apply to an invoice, and choose the transaction. Then, enter the items and select Save & Close.

It's also important to note that if you are on a cash basis, you can enter a credit memo instead of receive payments. The credit amount can be issued in your customer's account as a return and apply it to their invoice.

To verify that the write-off was successful, run a Cash Basis Profit & Loss Detail report to make sure the total is $0.

If you have any further questions or need assistance with writing off bad debt in QuickBooks Premier Contractor Edition 2021, please don't hesitate to reach out. Our phone support agents will be happy to help you resolve this issue.

Quickbooks premier contractor edition 2021