bad debt showing in client aged report

Question

After posting YE adjustment for bad debt in GJ, my client aged summary report still shows the client. Here is the adjustment that was made: 
 1201 (Accounts Receivable) Cr 2000 
 1205 (Allowance of Doubtful Accounts) Cr 10000 
 2310 (GST Charged on sales) Dr 600 
 5620 Bad debts Dr 11400 
 
 How to remove it from the report? 
 
 Thanks

Smith and Co · Accepted Answer

Bad Debt write-offs are usually done thru Acct Rec module. Go into customer sales and enter the customer name, for invoice nbr use the AJE nbr or something like MMMYY-W/O and use same date as the YE adjustment. Enter the bad debt as a negative taxable amount using GL 5620 - this should show both the Bad Debt amount and GST Collected amount. This will clear this from the customer account and credit the Account Receivable. 
 I'm just not sure why GL 1201 is only 2000 and 1205 is 10000. You should ask your accountant to explain that to you.

Sage 50 Canada

bad debt showing in client aged report

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