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Evo-ERP and DBA Classic >> Accounting >> how do I enter in a bad debt
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Message started by swalker on 01/04/06 at 11:43:18

Title: how do I enter in a bad debt
Post by swalker on 01/04/06 at 11:43:18

how do I handle a bad debt account in dba. how do I write it off.

Title: Re: how do I enter in a bad debt
Post by JNAPIER on 01/04/06 at 12:24:17

If the bad debt is in your AR, I apply a payment to the account to clear the entry from AR. Than make a GL CR to credit your bank account and debit your Expense account Bad Debt.

John

Title: Re: how do I enter in a bad debt
Post by RAGINE on 01/04/06 at 12:27:45

We have a GL expense acct called bad debt, I then entered a credit voucher under AR-B using the bad debt acct. Then go to AR-C and apply the credit to the bad debt.

Title: Re: how do I enter in a bad debt
Post by Lenette on 01/04/06 at 12:46:34

We do the same thing that Ragine does and it works great for use.

Side note: we do not send a paid-in-full statement to the customer. And, actually have received funds a year or so down the road when the customer wanted new product. (Of course the new sale was CASH UP FRONT). At that time we enter an AR Voucher (AR-B again) for the amount of the bad debt and continue on as normal.