To do this task
Before writing off bad debt, make sure your A/R Aging Detail report is clean
If necessary, create an account for Bad Debt in your Chart of Accounts.
Go to the Company menu and click Chart of Accounts.
Click the Account button at the bottom of the list and then click New.
Click Expense and then click Continue.
If you are using account numbers, enter the account number in the Number field.
In the Account Name field, enter Bad Debt.
Record the bad debt.
Handling bad debt