Writing off a finance charge leaves client with credit in A/R

I'm using QuickBooks Pro 2006, and I wanted to write off a finance charge.

I followed the help by creating a credit for the client, with the item selected as "Bad Debt - Interest Charges". When I save this, it removes the balance on his account as viewed when doing a "Customer:Job List". And it shows up in the "Bad Debt - Other Expenses" on the "Financial Report".

The next step, according to the help wizard, is to receive a payment from the client. and use the "set credits" button. When I do this, it gives the client a credit in his A/R.

It is my understand that step two should only be clearing the "bad debt" from the A/R.

Two questions:

1. Shouldn't my client's balance reflect as zero in the A/R ??
2. Shouldn't there be a way to reduce income in the "Finance Charges" account?

I could just delete the F/C invoice, but I would like to track revenue lost as a result of some clients not paying their finance charges.

If I sound confused, it's because I am. It seems like this should be a simple process. Perhaps I'm viewing it incorrectly.