How Do You Handle a Bad Debt in Cash Receipts? - Accrual
If your accountant gives you a journal entry to write-off bad debts, ask which invoices are being written-off. Use this procedure to remove the open invoices and the recommended entry to the General Ledger will automatically be made.
1. Highlight the invoice not being paid and click Inv edit.
2. In the adjustment field, enter the entire Amt due as a positive amount and use G/L # 968, Bad Debts – Net. This will clear the invoice from the open invoices. It will not affect the Booked/Billed Orders Comparison Reports or Open Commission.