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QuickBooks MCQs

While writing off bad debt, why is it preferable to use a credit memo rather than record the bad debt amount and expense account in the Discount and Credits window?

Using a credit memo lets you to record the sales taxes included in the invoice and adjust the client's sales tax liability.

In the Discount and Credits window, you can only change income accounts.

Recording the bad debt amount in the Discount and Credits window adjusts your client's liability for the sales taxes included in the invoice.

Credit memos use individual items to adjust all of the inventory balances.

Answer

Correct Answer: Using a credit memo lets you to record the sales taxes included in the invoice and adjust the client's sales tax liability.

Explanation:

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