How to write off bad credit

[Cam Ellison]

Bob Taylor wrote:
> IANAA also. However, I did take an accounting class many many years ago.
> Since bad debts hasn't changed since then, create an expense account
> called, you guessed it, Bad Debts. I would, offhand, credit Bad Debts
> and debit the A/P account for this business. I would hope the U.S. IRS
> still allows these to be deductible!
>
>   
Aye.  This isn't a debt, though - it's on the A/P side.  I think he 
actually needs to go through the process: it's not a regular transaction 
where you can simply transfer it from one account to another.  I think 
he tried to do that, but it did not clear the payment from the A/P 
register.  That is, it still shows up in reports.

Cheers

Cam