Greg,
You’re not hijacking the thread. Good question. Whether a bad debt is a simple loss of income or an expense depends on your method of accounting, cash or accrual. If the latter, the sale is counted as income the day you create the invoice. By the former, it isn’t income until it is paid. It is not uncommon to call a bad debt an expense. At least this is my understanding from my experience and what I studied in college. That was back in the late 60’s so what do I know? 😉 Roger Message: 6 Date: Tue, 9 Apr 2019 16:07:18 -0700 From: Greg Feneis <mfen...@gmail.com <mailto:mfen...@gmail.com> > To: Adrien Monteleone <adrien.montele...@lusfiber.net <mailto:adrien.montele...@lusfiber.net> > Cc: GnuCash <gnucash-user@gnucash.org <mailto:gnucash-user@gnucash.org> > Subject: Re: [GNC] Posting a bad debt Message-ID: <cajdmz-v_2vlymdvugpwzdqzbnrie5tmrqnotubjc4gy6abz...@mail.gmail.com <mailto:cajdmz-v_2vlymdvugpwzdqzbnrie5tmrqnotubjc4gy6abz...@mail.gmail.com> > Content-Type: text/plain; charset="UTF-8" Since people are trying to associate a non payment with an expense account, does not getting paid by a customer actually constitute an expense? I imagine in business, the big concerns with expenses are tracking where the revenue that doesn't become profit goes, and (at least in the US) getting tax deductions for as many deductible expenses as possible to minimize tax liability. As a sole proprietor, I think when I can't collect an invoiced amount, that's just income I can't receive. I don't think it's an expense. It's not revenue spent on something, and it's not tax deductible, AFAIK. Sorry, I don't mean to hi-Jack the thread, it's kind of related. Kind regards, Greg Feneis <http://www.linkedin.com/in/electromechanical _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
