Recording Income As Uncollectable in Previous Fiscal Year

*** This FAQ Applies to AccountEdge, AccountEdge Network Edition, Premier Accounting, FirstEdge and BusinessBasics ***

I have written off a customer invoice as uncollectable. This was done in a previous fiscal year. The invoice is now closed and the customer has sent in a payment for the invoice. How do I handle this?

In your accounting program, you will create a ‘cash sale’:

1. Go to Banking -- Bank Register.
2. You can deposit this to undeposited funds or to your regular checking account.
3. Enter the amount of the customer’s check in the amount received field.
4. At the lower half of the screen, enter an income account for sales, using the same account you used on the original sale, or using a special income account like bad debt repayment.

You can deposit this to undeposited funds or to your regular checking account.

---