I use QB PRO 2008 and want to know how you journal out a bad debt, its very small less than £50, company owed me small amount but went bust, as it was so small, wasn't worth persuing as it would cost me more to do so. My question is at the moment it sits on the balance sheet under accounts receivable (outstanding), but I know on SAGE, a client of mine had a bad debt and the accountant at the end of his financial year gave me some journal adjustments one them was for the bad debt, which was: 8100 - Bad Debts CR 3200 - P & L DR.
So on SAGE thats fine know how to do that etc, but can't see how to do it on QB. In the chart of accounts there is no listing or listing that I can see named the P & L account like in SAGE.
Am I missing something on QB? I know its late and my brain is not functioning tonight at all! There is probably an easy answer to all of this but want to make sure the bad debt gets written off in my books and comes off the bottom line on the P & L for SA, was half way through filing my own SA online today and suddenly realised thats its not written off on my Quickbooks.
Also one last thing, I posted last week about the Depreciation of a new Laptop, got that one sorted no problem in Quickbooks, did a journal, but I see from another journal from an accountant on SAGE, that he has Credited the Computer Depreciation A/c and Debited the P & L account, so then it will show in hte P & L. Its late and I am confusing myself!!! Any help is always appreciated I am going to sign off now and go to bed! I have gabbled enough and probably don't make sense.
I think I have found the answer to the bad debt, been looking on the net. I think I credit the invoice say my year end date and thus it then comes of the income bit on the P & L, if someone could just clarify this it would be great. By the way I am not VAT reg.
Still confused about the 2nd bit of my previous posting regarding the depreciation into the P & L? So any help would be much appreciated.
Thanks for the reply, I haven't had to do this bit in QB yet as my client who is on it, his accountant is about to send me his yr end adjustments.
On my chart of accounts set up for my own business the Laptop I have depreciated 100% and done a journal to do this. But under the Computer (Fixed asset) in the COA, it has and account already listed for Depreciation, so posted the journal to that. So on the balance sheet it has computer equipment then underneath it Depreciation. Now this COA was already default. Are you saying that I have to set up say another Deprecation account but this time in the P & L side of things? So then I would Credit the Fixed asset depreciation and Debit the P & L (Expense) Depreciation? Have I got that right?
The stupid thing is I can do it on SAGE as theres the 3200 P & L account. Got a couple of clients on Sage instants and the journals are straight forward for the yr end adjustments. Sorted it all out today on my own SA online, so no probs there just want to make sure the journals etc are correct on my QB for myself. I hate not having it right. I do like QB's and find it easy to use, its just this last bit thats really annoying me now and want to get it right. Also my clients whose adjustments are due back, he will have on there Loan and loan interest, that I don't have the details of but his accountant allows for it at the end and then will give me a journal for it does this need to go to the P & L as well? At the moment the way the books are it will sit on the balance sheet.
Sorry its so long winded got carried away.
Hope the legs getting better now.
Many thanks Amanda
-- Edited by Amanda on Friday 29th of January 2010 11:07:03 PM
-- Edited by Amanda on Friday 29th of January 2010 11:12:57 PM
