S-Corp - Cash Basis - performs services in 2021 for customer, not reported as income, they use a clearing account.

In 2022, they w/off to Bad Debts since unable to collect as of EOY in 2022.

This cannot be done, since they are CB, therefore cannot expense, so how would this be reported?

1.  Reclass to Other Asset and call it what?

Or is there another option?