Hi, I use QB Pro 2009. Allowance for Doubtful Accounts is contra to A/R. So AFDA is taken as A/R. When at the end of the year to make General Journal Entry, Bad Debts-Dr to Allowance for doubtful accounts-Cr it asks the name of Customes as AFDA is A/R. But for AFDA no specific Customer is assinged so how to make this entry. Your help will be appreciated. Thank you.
"jayesh" wrote
I don't know anyone that uses an allowance for doubtful accounts except for GAAP or regulatory reporting purposes. And even then, it's an annual or quarterly journal entry to the books. But to physically change the carrying balance in Accounts Receivable, in QB or any other software really, you have to write off specific customer accounts. You're never going to collect that $14.23 from Joe Customer who hasn't been in for three years, so write it off. The company should have a written policy about when bad AR's get written off, and the procedures to do so, and even limits that can be done by staff and which amounts have to have approval of a higher up.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.