children and the influence their friends have on them

My oldest daughter has this new friend that she has played with outside of school a few times recently. She has now begun to display bad and negative behavior. While I do understand that my daughter no angel and has her moments where we have to correct her for her behavior, this girl's bad attitude and behavior seem to be rubbing off on my daughter. She is only seven and I don't want to tell her who she can and cannot play with, but I do not want this behavior to continue. Fellow mommies, how do you handle a situation like this?

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    Not yet, My husband and I sat down with her last night to explain how we didn't like this behavior and that their would be consequences if she continued with this behavior and that just because someone else behaves badly, that it doesn't mean that she needs to follow in their footsteps and repeat it. We are hoping that she changes without us having to confront this girls parents.
    Also, She was punished last night as everything came to light when this girl was over our house yesterday and something happened and my daughter kicked her in response, which we do not condone physical violence and she knows that...........ugh
    About Christina
    Current: Lebanon, Pennsylvania
    Birth: May 22
    On since: Jul 11, 2014
    I am a mom that works full time from home. I have two beautiful little girls and enjoy every minute that I spend with them.