QB Issue Resolution:

debt that is forgiven is income

create a vendor credit, select the other income account and enter the amount.  then in pay bills select the bill and apply the credit

Resolution for Issue 'how to write off accounts payable that will no longer to be paid?' available: Yes (Solved).
Source: Intuit Community forum.

how to write off accounts payable that will no longer to be paid?: 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.

Support for Accounts Payable
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Error Recovery for Accounts Payable [Canada]
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