RE: Account Type for Allowance of Bad Debts

Hi, does anyone know what account type I would need to set for Allowance of Bad Debts so that it lowers the Accounts Receivable account?

mmascitto Beginner Asked on June 8, 2021 in Accounting.
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2 Answers


You should use the ‘Account Receivable’ Account type for the allowance account. So that when you run your balance sheet report, it will be grouped under the account receivable section and show you the net amount. Still, you can expand the section and check for underline accounts.


Rookie Answered on June 9, 2021.

You can have more than one account designated with the Accounts Receivable account type? That won’t cause any problems with receivables?

on June 9, 2021.

No, It will not have any issue. You can make Actual account receivable Account as default for the customer invoices.

on June 11, 2021.

Ok, thanks!

on June 11, 2021.
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