QB Issue Resolution:

There are a couple of ways to write off bad debt (if you are on an accrual basis).  This is what I do.

First, be sure you have recorded all attempts to collect the money, including your notes and any correspondence to the debtor.

  1. Create a Bad Debt expense account in the chart of account if you don’t already have one.
  2. Create a non-inventory item in the Products and Services list called Bad Debt and select the bad debt expense account on the item screen.
  3. Create a credit memo for that customer, using the bad debt item, enter the amount and save.
  4. In receive payments, apply the CM to the invoice, save.

Resolution for Issue 'How do I write off an unpaid invoice?' available: Yes (Solved).
Source: Intuit Community forum.

How do I write off an unpaid invoice?: 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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