QB Issue Resolution:

There is no need for Journal Entry which does not properly work with A/R. You will need to delete JE. And, credit memo is not needed.

You need to go through “Receive Payments” process and write off A/R against the bad dept expense rather than shown as actual cash or check form of payment.

GO to Customers > select Receive Payments > select Customer from Receive Payments > check Invoice to write off > make sure to enter amount is zero under Payment column (because there is no actual payment) > select “Discounts & Credits” >
Amount of Discount = total invoice amount to write off
Discount Account = Bad Debt Expense account
Click DONE (will notice w/o amount shown under “Discount” column
Follow the rest of steps per QB instructions and SAVE

Resolution for Issue 'Bad Debt write off?' available: Yes (Solved).
Source: Intuit Community forum.

Bad Debt write off?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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