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In QuickBooks,how do I correct a bad debt expense that was eventually partially paid?


In 2008 we had a large debt that was uncollectable for several months. At the end of the year I changed it to Bad Debt Expense. In February we received a payment for about 5 of the $7k that was originally due. I recreated the invoice and applied the payment to it. I'm still left with an overstated bad debt expense for 2008. What is the best way to correct this? Thanks

449 day(s) ago

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SteinS 		You could go back and change the re-created invoice to reflect the actual amount received and post it to an income account with the offset being cash in bank. Or you could create a journal entry to offset the bad debt to income. Since you wrote off the bad debt last year I would think this money that came in now should be classified as income. I usually do not write off bad debts until they are several years old, but that is how our business works. You might want to check with your accountant.

Posted 449 days ago

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noamnoam 		you can delete the bad debt part of it. Thats what i had to do otherwise it will stay on there forever and screw u all up

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