...services that have been performed, but not yet paid for, are recorded in your books as either accounts receivable or notes receivable. After a reasonable period of time, if you have tried to collect the amount due, but are unable to do so, the uncollectible part becomes a business bad debt.
This is great! I thought you could never write this stuff off. My accountant said I couldn't because I was a cash basis accounting. I think I need an new accountant!