Yes, and if it is counted as income it then becomes a tax deduction (consult your CPA). Profit & Loss is all a part of business. How can you not have the ability to w/o a bad debt? A business that is 20 years old would have an AR of xxxxxxx pages because of bad debt. Each business should have a bad-debt policy that is incorporated. We adjust off balances after 6 months of attempted collections (system auto posts the notes so we have documentation) if the balance is under xxx. If it is over xxx then it goes to collections. Your PM system has codes for w/o. Contractual, Provider, bad debt, denial can't bill client.