To write off A/R customers you can
1) Issue a credit slip to zero the balance using screen 4,7
You will be given the option to record an expense code which will
make a general journal entry to make this a proper double-entry for
the financial reports.
You could find or make an account in the chart of accounts (screen 8,5
from the main menu) called Bad Receivables. Make this begin with 6,7,8
or 9 to indicate an expense account.
2) Leave the account balances in, but turn off finance and late charges from
the account balance screen (8,1,4). Also give the customer a certain
customer type - such as W0 to indicate a customer written off in 2000, W1
to indicate a customer written off in 2001, etc. When you run statements
or accounts receivable reports you can exclude those types. Or, if you
wanted to see a total of accounts written off in 2001, you would choose
to include ONLY types W1.