QuickBooks Video Tip: How to Write Off Bad Debt in QuickBooks

QuickBooks demonstration by www.slcbookkeep... on how to write off bad debt in QuickBooks. It is important to understand the correct procedures for writing off bad debt in QuickBooks. If you follow other methods you may throw off your prior year financials or your sales tax liability. • QuickBooks Video Tip: ...

[@sirsquatch2347]

Best advise on this subject. Thank you.

[@Slcbookkeeping]

Absolutely no problem. Glad it helped.

[@rosarodriguez8461]

thank you so much this video was exactly what i needed.

[@MattRoberge]

Hi Yoshi, I'm glad it helped.

[@jenniferrathjensdlrt3661]

Thank you so much! It helped me a lot! :)

[@Slcbookkeeping]

You're welcome Jennifer! Glad it could help.

[@TheSeifus]

Thanks!!

[@Slcbookkeeping]

No problem buddy.

[@msjp1753]

Many thanks for this video, just viewd it in Oct 2020. However, I cant find how do you reverse a bad debt entry in Quickbooks, especially if its after taxes have been paid. can someone give this answer.

[@Slcbookkeeping]

Ms J P that depends on if you are filing your taxes on a cash or accrual basis so I’d recommend consulting with your CPA.

[@Rustsamurai1]

please show a version with sales tax.....

[@MattRoberge]

+Rustsamurai1 The sales tax side of this gets a little more complicated. You will want to get with your CPA in regard to the implications of writing off sales tax. Additionally if you collected sales tax you owe it to the state.

[@cindylawrence8349]

I didn't have a apply window to pop up, how do I apply to invoice?

[@MattRoberge]

Hi Cindy, outside of the details in this video I'm not sure why it won't pop up. Make sure it is applied to a specific customer.

[@TheSeifus]

What happen if the tax liability is already paid when we do bad debt? Do we request a refund from the tax authorities or when the year end tax is done we record it in the tax form some where?'

[@MattRoberge]

That is a great question that I don't know the answer to unfortunately. I would ask your CPA.

[@Deathbysnusnu125]

so if i did charge them tax do i enter in the amount with out tax and put in the tax so it totals the original also i have no clue how this will show up when i go to pay taxes

[@MattRoberge]

+bob talbot If you charged them tax then it should be reflected as such on the invoice