Senior Member

How to write off a bad debt

The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected.  


So how do you write these off in QuickBooks? Find out here: 



Create a credit memo:

  1. Select the Plus icon (+) at the top > Credit Memo/Adjustment note.
  2. In the Customer: field select the customer name.
  3. For the Product/Service  field, select Bad Debt.
  4. Under Amount, enter the full amount you are writing off.
  5. Select Save.

Apply the Credit Memo:

  1. Select the Plus icon (+) at the top > Receive Payment.
  2. Select the Customer name.
  3. Below the form, all open transactions should be checked. If so, select Save. If there are no transactions, select Cancel


For any questions please do not hesitate to leave a comment or get in touch.


Kind Regards,


Emily Mockett

1 Comment
Frequent Contributor

Re: How to write off a bad debt


That was a useful article.