We just discovered that the bad debt account was set as a balance sheet account and not an income statement account...I do have a backup of the ledger prior to year end and I even created a 2004 gl folder but we are now 3 months into the new fiscal year....I read a previous posting from May 17, 2002 where you talked about making a journal entry to correct the problem....my accountant said that is not possible and I do not have a dealer...there is no journal entry that could be made to correct this problem....is my only option to restore the general ledger to prior to my year end and then enter by hand all journal entries posted to the general ledger since the year end closing? Please let me know. Thank you!!