as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
what would be the appropriate account for written off loans to friends and family?
user
a simple way to account debt forgiveness of your receivables is to utilize a "bad debt" expense account. take the following two examples: if you are only forgiving a portion of the principle, another popular term used is principle reduction as the expense account.
assistant