A.4.9a Writing Off Invoices | Scribe

    A.4.9a Writing Off Invoices

    • 32 steps
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    Start in the Sample company.
    1
    To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.
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    Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm.
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    Now let's get started with the exercise. First, let's take a look at Craig's Balance Sheet, so we can see how the current invoice is reflected there.
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    From the left navigation bar, click "Reports".
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    Click "Balance Sheet".
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    Because the invoice has not yet been paid, and because Craig is using accrual accounting, the $75 is already considered income. To see this, let's look at the Accounts Receivable (A/R) total.
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    On the Accounts Receivable (A/R) line, click "5,281.52".
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    To ensure we include all Accounts Receivable invoices, let's change the date range to All Dates.
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    Click the "down arrow" next to Custom dates, then select "All Dates".
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    The report will automatically update, but let's sort it so it's easier to find Kathy's invoice.
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    Click "Name" to sort the transactions alphabetically.
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    Scroll through the report to find the Kookies by Kathy outstanding $75 invoice.
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    Before we can write off this invoice, we need to set up an account that will track the Bad Debt expense.
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    Click "Accountant Tools", then select "Chart of accounts".
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    Click "New".
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    Click the "Expenses" icon.
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    In the Save account under field, select "Expenses".
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    In the Tax form section, select "Bad Debts".
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    In the Account name field, type "Bad Debts".