AR credit balance write off

It depends if you have contacted the customer or not about the credit. If you decide to write it off you have to declare it as misc. income. There are two scenarios here: 1) you write a check and mail it to the client or 2) write it off. Here is how to do it 

Option 1: Write a check from the write checks window made out to the customer, for the expense account select Accounts Receivable and select the customer in the customer:job section, make it out for the exact amount. Go to the "Receive Payments" window and select the check and press the button that says "apply credits" this will zero out the receivable balance. Mail the check to the customer.

Option 2: Write a check from the AR as described above but on the second line select the misc income account and enter a negative balance. The check must balance out to zero in order for this to work. Go to the "receive payments" and clear the receivable by selecting the check and hitting apply credits. On your bank recon. clear both the debit and credit side of the check both should be at 0. Only do this if the credit is insignificant and the client does not want it. Hope this helps and good luck.