How to Account for Bad Debts and Record it in Quickbooks Online and Desktop
Ronika Khanna CPA,CA
JUNE 23, 2023
A bad debt, in accounting terms, refers to an amount charged to a customer that is never paid. In accounting parlance this is referred to as an Allowance for Doubtful Accounts (somewhat self explanatory) or AFDA. In accounting parlance there would be a credit to sales and a debit to accounts receivable.
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