Scenario:
Assuming that you have an unrecoverable invoice at RM 10,000 from Azlan Restaurant and you wanted to record as bad debt.
1. Create a Bad Debt Expense account under Expenses. Go to Accounting > Chart of Accounts > +New. (May refer to the image below)
2. Create a Sales Credit Note. The amount is the same as the Invoice amount you want to issue the bad debt. For this case :
Customer - Azlan Restaurants
Account - Bad Debt Expense
Amount - RM 10,000.
3. Apply this Bad Debt Credit Note with the Invoice.
4. Click Save and you're done. That will do the trick, no need to pass a journal anymore!