Well, the answer can be given in few lines. Simply do the following:
- Debit: The cost of goods sold with a loss,
- Credit: The purchase account.
How to Record a Loss in QuickBooks
If you were unable to recover money from the goods sold then here is how you will record a loss or bad debt in your QuickBooks account.
- Within your quickbooks account, select the customer’s menu tab.
- Now make a selection on the credit refunds.
- From the Job drop down button, choose the name of the customer who didn’t pay for the goods purchased.
- Now in the details area, click on the item that was purchased but the money was not received.
- For any warnings you receive, simply click OK.
- Now enter the total amount of the loss in the amount field.
- Enter the tax code in the tax column that was used in the sales receipt and click save.
- On the next screen click apply the amount to an invoice.
- Now checkmark the invoice you just created, otherwise it will be selected by default.
- Click Done.
- You have successfully recorded a loss in quickbooks.