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Créé par AgExpert Support
Créé le 10 avr. 2023

Disqus Agexpert Accounting Questions Archive

Hi - I generated in invoice for selling straw. The purchaser is never going to pay and I am trying to correctly write that off. Our accountant gave me a journal entry that debits "Allowance for Doubtful Accounts" and credits "Accounts Receivable" and "Bad Debt Expense". This does not remove the amount owed from the actual purchaser. How do you recommend doing this?
Thank you
Kate

  • RÉPONSE
    10 fév. 2025

    Hi Kate,

    Instead of entering that as a general journal entry, use the regular transaction entry window instead. Enter a zero dollar deposit and then use RP Receivable Payment as your first line to clear the outstanding invoice. Then create a second line to balance the transaction and select your Bad Debt Expense account. That will remove the amount owed from the purchaser account.

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