P & L Statement it shows the invoice totals. How do I get it to show the actual $ amount receivedinstead?

Question

In Quickbooks
the income portion of the P&L statement isn't showing actual income. How can I make it do that?

Answer 1

Most P & L statements show sales based on invoice totals. When people are invoiced, it is expected that they will pay for the merchandise. On the balance sheet, there is an Account for Accounts Receivable. When money is received from customers, it reduces AR and increases Cash. If the collections department decides that an invoice is uncollectable, AR is reduced and the expense account "bad debt writeoffs" is charged. That bad debt expense account is on the P & L statement, and as it grows, it reduces net income.