Can profit booked last year can be reversed

For a job of 2008 profit was booked. Subsequently as the job went on a dispute and cargo was lost. The claim is in process and recovery seems remote. Payment has not been received from customer and nor has the payment paid to supplier. If the debtor receivable is offset with the supplier payment to the extent of supplier payment, the balance would be the profit already booked in year 2008. How would the balance lying in debtor a/c adjusted.. will it be written off as bad debt.