Handling Bad Debts in Accounts Hosted

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Neil Helen Arnold
Neil Helen Arnold Member Posts: 7 ✭
edited November 2018 in Accounts Hosted
I needed to clear some invoices as Bad Debts in Accounts Hosted. I followed the instructions in the help section which cleared them from the customer's account. However when I create a statement I find the total of the debts is added to the balance outstanding on the statement. I would have expected this to be cleared. Can any body help me with this?

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  • nance.s
    nance.s Member Posts: 60 ✭
    edited November 2018
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    Create an expense account called Bed Debt Writeoff. 
    Create a journal entry with a credit for the amount against Accounts Receivable and the customer name and a debit against bad debt writeoff account.
    That will bring the customer balance to zero.  To remove the plus and minus entries on your accounts receivable ledger do a customer receipt and tick the invoice against the journal entry credit.
    Hope that helps.
  • neil.a
    neil.a Member Posts: 4 ✭
    edited August 2015
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    Thank you for that response but I have done all that. My question is why is it still appearing as a balance on the statement ?

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