David,
Excellent explanation of the standard accounting practice for handling bad debts. I saved it. As you note, the problem is the limits of the invoice module in GnuCash. I did create an income contra account for bad debts with the idea of paying the invoice from that account and later entering a transaction to move it to the bad debt expense account. A customer got a case of the guilts and asked how much she owed after I had charged it off. I received her payment direct to a cash account (dr) and a credit to this bad debt income account. That works but I don't feel I have a handle on it yet, that it is the best practice. Might be a useful feature/fix to add to the program in the future. Thanks, Roger Message: 9 Date: Tue, 9 Apr 2019 18:59:16 -0500 (CDT) From: David Cousens <davidcous...@bigpond.com <mailto:davidcous...@bigpond.com> > To: gnucash-user@gnucash.org <mailto:gnucash-user@gnucash.org> Subject: Re: [GNC] Posting a bad debt Message-ID: <1554854356764-0.p...@n4.nabble.com <mailto:1554854356764-0.p...@n4.nabble.com> > Content-Type: text/plain; charset=us-ascii Roger, The conventional accounting procedure for bad debts is to have a contra sub- account to the accounts receivable usually labelled "Allowance for Bad Debts" as Adrien indicated earlier. The total of this account sums into the Account Receivable account, i.e. it is a child account. It is called a contra account because the entries which increase its value are credits (debits increase the balance of an asset account). David Cousens (Chose not to copy the entire post as it makes the thread very long and the original is available in the earlier email. If I did wrong, someone will let me know.) _______________________________________________ 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.
