Create an *Asset* account labeled something like, ‘Allowance for Doubtful Accounts’.
You can place it as a child of the official Accounts Receivable account if you like, or create a new parent labeled ‘Other Accounts Receivable’ and place it as a child of that account. Just be certain to make any of those normal *type* ‘Asset’ accounts. You can only have ONE *type* ‘Accounts Receivable’ no matter what you call it. Then ‘pay’ the invoices with ‘Allowance for Doubtful Accounts’. The original invoice contained something like: Dr. Accounts Receivable Cr. Income Now, this ‘payment’ will result in: Dr. Allowance for Doubtful Accounts Cr. Accounts Receivable So your AR for that customer will be correct. (and AR as a whole) Now, edit your charge off transaction(s) to be between the ‘Allowance for Doubtful Accounts’ and ‘Expenses:Bad Debts’ like so: Dr. Expenses:Bad Debts Cr. Allowance for Doubtful Accounts *note, this is not specific to GnuCash, but just generic Accounting 101. Some businesses also estimate uncollectables and pre-transfer some amount to the Allowance account. Speak to a local CPA if you think this might be necessary or required in your jurisdiction. Regards, Adrien > On Jun 24, 2020 w26d176, at 5:19 AM, Carla Ralph <[email protected]> > wrote: > > Good Morning > > > > I hope that someone is able to assist me with a query. > > > > I have 2x customer invoices that keep on coming up as reminders even though a > journal entry has been put through for bad debt. > > > > > > > > Was not able to process payment to bad debts account from Accounts Receivable > > > > so I had to do a Journal Entry from Acc Receivable to Bad debts > > > > Income:Services > > > > Assets:AccountsReceivable > > > > Expenses:Bad Debts > > > > Please assist me with the correct way to post this in your GnuCash system. > Your assitance is greatly appreciated > > > > Regards, > > > > Carla Ralph083 585 6309http://magentagroupsa.co.za/ > > > > > > <image001.png><image002.png><image003.png><image004.png><image005.png><image006.png><image008.png>_______________________________________________ > gnucash-user mailing list > [email protected] > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
