From the Received On Account window, you can enter a payment transaction for the purpose of writing off a bad debt. Use the Allowance field to enter the amount you are writing off as a bad debt.
If this is a balance forward account, type the write off amount in the Allowance field. Go to step 7.
If this is an open item account and the Unapplied Documents tab displays, you must first apply any unapplied documents before writing off the bad debt. Click here for procedure steps.
Select the invoices that make up the bad debt. To select an invoice, click the box on the left, next to the Store field.
Type the write-off amount in the Allowance field.
Fill in the check number field (this is a required field). Also, you can fill in the reference (Ref) field to remind you that this is an allowance for a bad debt.
Click Post.