Here is the mistake: “The allowance for doubtful accounts is setup a sub account to AR.”
You never use AR in QB with JE.
This is another mistake for QB: “I initially reserved for the bad debt by the following entry:
DR: Bad Debt Expense / CR: Allowance for Doubtful Accounts”
An allowance is […]
Resolution for 'bypassed Sales issue: 'How do I clear the customer’s AR account after a write-off/allowance entry?' available: Yes.
The bypassed Sales 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 bypassed Sales issue yourself by looking for a resolution described in the article. If it is a complex bypassed Sales issue or you are unable to solve the issue, you may contact us by clicking here or by using other bypassed Sales support options.
For more information about resolving issues related to bypassed Sales in Quickbooks/QBO or to get support for the issue 'How do I clear the customer’s AR account after a write-off/allowance entry?', click the link below: