To use a customer credit to remove a customer's bad debt

1. Create a new account named Bad Debts and assign it an expense account classification. See "Creating accounts" on page 183 for more information.
2. Use the Sales window to create a miscellaneous sale for the customer. See To sell items to a customer for more information. For each of the customer's outstanding debts, enter a line item with a negative value, using the Bad Debt account you created in step 1 in the Allocation Account column in each line item.

When you're finished, click Record. The transaction you've recorded is called a customer credit.

3. Click the Sales Register option in the Sales Command Center then click the Returns & Credits tab.
4. Highlight the customer credit you created in step 2.
5. Click Apply to Sale. The Settle Returns & Credits window appears.
6. The customer's open sales appear in a scrolling window. Enter the amount of each open sale in the Amount Applied column.
7. Click Record. All the customer's bad debt is cleared.