QuickBooks write off bad debt, Start by opening the "Customer Center" and locating the specific customer account with the outstanding bad debt. Once you've identified the customer, create a "Credit Memo" for the amount of the bad debt. Ensure you select the appropriate expense account for bad debts in the "Account" field within the Credit Memo. Save the Credit Memo, and then go back to the Customer Center. Find the customer's outstanding invoice and apply the credit memo to offset the amount owed. This process effectively reduces the customer's accounts receivable and records the bad debt as an expense in your financial records, keeping your books accurate and up-to-date. However, it's advisable to consult with a financial expert or accountant for guidance tailored to your specific business needs and any potential tax implications.