When a payment is written off in bond, the following chart of accounts will be adjusted:

Write-offs in payment schedule for the reason "Cannot be Collected" for a payment due FROM the customer

• Debit – Account 5220 – Bad Debt 
• Credit – Account 1200 – A/R

Write-offs in payment schedule for the reason "Cannot be collected" for a payment due TO the customer

• Debit– Account 1200 -  A/R
• Credit– Account 5220 - Bad Debt

Write-offs in payment schedule for the reason "Goodwill" for a payment due FROM the customer

• Debit – Account XXXX Revenue Account (4030 Policy Fee, 4040 Interest Income, 4005 Commission Income for all the rest, NSF  Fees if applicable)
• Credit – Account XXXX  Account 1200 - A/R (for all of it)

Write-offs in payment schedule for the reason "Goodwill" for a payment due TO the customer

• Debit– Account XXXX  Account 1200 - A/R (for all of it)
• Credit– Account XXXX Revenue Account (4030 Policy Fee, 4040 Interest Income, 4005 Commission Income for all the rest, NSF  Fees if applicable)