Writing off an open A/R invoice to your bad debt account can be very simple if you know a few shortcuts. Here is the simplest way to record this transaction. First, go into the General Ledger, Enter Accounts. Lookup your bad debt account and write it down. Then, go into Accounts Receivable, receipts entry. Add an invoice billing receipt into an open, empty batch. Enter the customer. For the Deposit reference enter WRITEOFF. Change the Checking Account to be your bad debt account. You cannot use the lookup and select the account because the system will only show you valid bank/cash/checking account in that lookup screen. Do not change the Accounts Receivable account. In the check number enter WRITEOFF. If the invoice was entered to a job, select the job. Enter the amount of the invoice to write off and apply it to the invoice at the bottom of the screen. Click OK and post like a normal receipt transaction. When you run a detail of your bad debt account you will see this transaction amount as a line item. I recommend printing this detail for your CPA at the end of your fiscal year.