Roger, That is correct and likely the source of the discrepancy in understanding how to treat bad debts and the meaning of ‘revenue'.
Under accrual accounting, revenue is booked when it is earned, collection is a separate event. The business features of GnuCash were designed for accrual based accounting. There is at least one open bug as an RFE to modify them to be useful for cash-basis accounting but I don’t know if anyone has made any effort there. Regards, Adrien > On Apr 10, 2019, at 11:26 AM, <rmom...@gmail.com> <rmom...@gmail.com> wrote: > > 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 _______________________________________________ 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.
