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Old 01-16-2010, 05:21 PM   #1
sonya1008
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Accounting for deadbeat client?

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I'm sorry if this has been covered - I'm new and couldn't locate this info with the search.

Our business is an LLC in Georgia. This year, we had a client who skipped out on his bill to the tune of $1,500. This money is clearly not going to be recovered. How do I account for this on our taxes? Thank you!
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Old 01-16-2010, 05:40 PM   #2
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if on a cash basis, nothing---never received, lower income.
if on accrual basis, write off to bad debts expense.
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