USA Interest Write Off

[SFSNC]

If you have sent loans off to a service provider to collect and after many attempts to collect you decide to write the principal and interest off how would this be done? Currently the principal is being credited to Notes receivable and a debit to miscellaneous expense. The interest on the other hand is being credited to bad debt expense and debited to miscellaneous expense to offset. There is no credit to a receivable account because there was never a receivable account set up. Once interest is collected from the servicer it's posted right to revenue. I'm not sure the in and out on the expense side for interest is correct.. Any suggestions?