How to record write offs?
This guy owed me $30000, have agreement and all paperwork, then his company went bust, liquidation resulted in average of $0 for creditors, just want to see where's the correct section to record write offs such as this?
Forum Discussion
1 Reply
Replies have been turned off for this discussion
Hello MalcolmLiang
Welcome to the Community Forum
If a customer owes you money, you can write off the bad debt. When you do this, the customer's outstanding balance is removed, your expenses are correctly updated, and any GST liability related to the sale is adjusted.
I have attached this Help Article on Writing off bad debts which will provide the steps to do so.
