Scenario: Craig did some gardening work for Kookies by Kathy. It has been over 60 days, and she still hasn't paid her invoice. After many attempts and trying to collect, Kathy finally admitted that she was going out of business and wouldn't be able to pay. Because Craig is an accrual-based business, he has already reported the accounts receivable as income, so he can't just delete or void the invoice. Instead, Craig will need to write off the invoice in QBO and record it as an expense.