FrontAccounting forum — Writing off a bad debt

Re: Writing off a bad debt

null@example.com (itronics) — Thu, 20 May 2010 09:12:17 +0000

I'm not accountant, by for me crediting seems to be good solution. Plus placing the customer account on hold .
Janusz

Re: Writing off a bad debt

null@example.com (chaitanya) — Thu, 20 May 2010 08:58:10 +0000

Hi Joe, Janusz,

Please correct if I got this wrong.

We may use credit note transaction for writing off bad debts.
Credit Note Type - Items written off
Write off the cost of the items to - Bad Debts A/c

Thanks

Re: Writing off a bad debt

null@example.com (chaitanya) — Thu, 20 May 2010 08:45:44 +0000

ephraim wrote:

I was wondering if anyone had a procedure for writing off a bad debt from a customer under FrontAccounting. I know I can make a journal entry to a bad debt expense account from Accounts receivable, but that doesn't take care of the customer balance in the reports.
Any ideas?
Thanks

Need guideline from moderators.

Re: Writing off a bad debt

null@example.com (ephraim) — Mon, 22 Mar 2010 22:46:51 +0000

Doesn't happen too often, but it does happen. I do bookbinding and I don't take payment until the job is complete. Sometimes the customer decides (probably after a tongue lashing from the spouse) that they can buy a new book cheaper than fixing the old one (which is true). I can generally sell the old book and reduce the loss, but it is a danger of doing business this way.

Re: Writing off a bad debt

null@example.com (rodw) — Tue, 16 Mar 2010 11:12:37 +0000

Well I hope this is not a regular ocurrence for you. I think the easiest way would be to either make a payment and journal the writeoff from the bank account to the bad debt expense account.

Maybe also consider creating a bad debt writeoff item so you can raise a credit against the customer.

Writing off a bad debt

null@example.com (ephraim) — Mon, 15 Mar 2010 01:25:11 +0000

I was wondering if anyone had a procedure for writing off a bad debt from a customer under FrontAccounting. I know I can make a journal entry to a bad debt expense account from Accounts receivable, but that doesn't take care of the customer balance in the reports.

Any ideas?

Thanks