QuickBooks Receivables Write Off Uncollectable Customer Account Balances

[@worldwidequickbooks]

Hello my QuickBooks friends! This video will show you how to set up for and actually do, write offs for dead beat customers who will never pay. Some cannot because of bankruptcy and some because of disability or death. No matter what, the procedures in this video will help you manage those uncollectable accounts. I hope you will click “like” and subscribe. -Mark

[@mariafernandasanchez6459]

Excellent video. Very helpful. Thank you so much!

[@worldwidequickbooks]

I'm very glad it helped you and I hope you will remember to click like after watching each one and subscribe Mark

[@anastasiya5742]

Great! Finally I found this information

[@worldwidequickbooks]

Glad it was helpful!

[@accountingservices1727]

Hello, thank you for taking the time to make these videos, I have learned a lot from your teachings. I have a question, I have 2 buildings to sell apartments, how should I organize clients and apartments? Customers = Building 1 Customers = Building 2 Jobs = Clients Class = Apartment Because a client can buy 2 apartments

[@worldwidequickbooks]

If you are using QuicBoks ONLINE, then you need to start from the begining and do everything according to this video........ kzbin.info/www/bejne/roC1ZpRspa5goc0 -Mark .

[@diwa.tricia2001]

Hi there, do you also have a tutorial on how to transfer customer's open balance to notes receivable? Is it appropriate to create a credit memo and charge "notes receivable" under other current asset? Or is there a specific steps to do the transfer? Thank you so much.

[@worldwidequickbooks]

In the desktop version of quickbooks, you would not make it a "other current asset"". Notes receivable would be a "accounts receivable" type of account. Then, one option, is to Reopen each invoice and change the receivable account in the pull down window to the other accounts receivable type of account that reads "notes receivable". I will soon make a video on how to transfer your accounts receivable to notes receivable and include the interest expense that goes along with it. This is sometimes also called factoring and I have recently gotten request for this video and I will be making it very soon Mark

[@diwa.tricia2001]

@@worldwidequickbooks thank you so much, Mark. You've been very helpful ever since I started watching your QB tutorials. Always grateful for the knowledge you share and time you allot answering all my questions. ❤️

[@michaelslavin766]

Excellent video. Thx Quick question: I’d like to write off an unpaid invoice from 6 months ago. I’m using QB desktop 2020 and I’m on Cash basis accounting. Since I never paid income tax on this (as I would have if it was accrural) nor sales tax, I’m understanding that it doesn’t qualify as bad debt. Could such invoices just be eliminated from AR with a simple credit memo (not using a bad debt account) applied to the invoice, or in some cases just delete it (never a good alternative) Look forward to your thoughtful reply especially your comments on a cash basis structure. Thank you so much.

[@worldwidequickbooks]

Thank you for your compliment thank you for your question It really doesn't matter how you record writing off the invoices, it doesn't matter if you use one big fat credit memo, or the accountant tool to batch right off invoices, or anything else. No matter what, you ultimately have to decide an account to record The right oath in when you remove it from accounts receivable You can't just remove it from accounts receivable without it affecting another account under the laws of debits and credits So if you don't want to put it to bad dead expense you then have to decide what to put it to It really is bad dead expense whether you paid the taxes on it or not It's one of those things that would affect your a cruel PNL but not your cash pnl for tax purposes So don't even worry about it it's simply a non deductible expense but it has to get recorded as bad that expense in your quick books because that's what it really is Thanks for being a fan and please continue to support the free channel and free help for everyone by remembering to click like after watching each video and encouraging everyone to subscribe Mark

[@michaelslavin766]

@@worldwidequickbooks Thank you so much!

[@skimflick]

@@worldwidequickbooks Being it's a non-deductible expense, could you create an "Other Expense" account, so it's not in your regular expenses on your P&L, but listed after your net gain/loss?

[@mizzkhaeya7819]

This is also my problem now. If you right off the accounts receivable to bad debts, it would record the whole accounts receivable as income and then the uncollectible as bad debt expense. If you analyze it, it still record a net income of whay the customer paid. But it just not feel right to see a bad debt expense using cash basis of accounting

[@budomushin]

Is there a way in quickbooks desktop to book bad debt using the allowance method? I really would like to see my A/R NRV.Responder

[@worldwidequickbooks]

Yes it's very simple Instead of connecting the bad debt item to the bad dead expense connected to the allowance account instead. That will make it the other method Don't forget,with the allowance method,. You are required to make periodic journal entry adjustments before reporting and that has nothing To Do with quick books. That's a journal entry in any software you're using Mark

[@budomushin]

@@worldwidequickbooks Thanks for the prompt response Mark. I really appreciate it. I understand what you're saying. I'd just prefer if I could have it as a contra asset (as it is) below the A/R, reducing my A/R to show A/R NRV. Just like how sub accounts of Accumulated Depreciation could be created to reduce the book value of an asset. However, from all my research and testing it doesn't seem like the AFDA can be made a A/R type. Am I just complicating it? Is that the accountant in me wanting everything "perfect" haha?