Bad Debt Expense showing on Cash Basis Profit and Loss

Why is Bad Debt Expense showing on my Cash Basis Profit and Loss Statement?


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How is the bad debt expense recorded? If it is simply recorded as an expense then it will show up; QB is not that sophisticated to understand otherwise.

I tried creating a bad debt with an old receivable using the Help button built into QB. It works; however, the bad debt expense shows up in both cash basis and accrual basis P&Ls, and we all know it is not a cash basis expense.

My suggestion: credit the receivable and get it out because it is not a deductible item.

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Accountant Man , The party's over...
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