You can do the following to record a bad debt.

1. Create the following G/L accounts (only the first time, if not already created)
* Bad debts (Balance Sheet)
* Provision bad debtors (Balance Sheet)
* Write-off bad debts (P&L)
Make sure both balance sheet accounts are in the same G/L Accounts Group
2. Create an item with type Service “Bad Debt” with the “bad debts” account as default COGS account and default Revenue account
3. Issue a new credit note to the bad debtor with the article  “Bad Debt” and the full outstanding amount as credit amount.
4. Allocate the issued credit note to the customer/outstanding receivable. The receivable is now moved from your A/R account/list and recorded as receivable on the created “Bad debts” account (receivable).
5. Make a manual journal entry:
Write-off bad debts (P&L) costs
A/ Provision bad debtors (Balance)