Replying to Religious conflict + friends= I want some advice

*DISCLAIMER* This is not an argument about religion but how to keep friends and get along. Please don't make this into a religious argument because as I state in the paragraph everyone is entitled to their own beliefs.

Heres the deal. I have two really good friends Jimmy and Mohamed. Jimmy is Christian. Mohamed is Muslim. They were partying with some people and Jimmy began a religious debate with some others. Mohamed didn't want to talk about religion and asked them to stop because everyone is entitled to their beliefs and he knows that no matter what he says you can't change someone's religious views. Mohamed is not very religious but it is part of him. Jimmy said that he feels bad for Mohamed because Mohamed is going to hell since hes not Christian. Also that Jimmy wants to help Mohamed. He goes on to bash Islam in general. In my opinion Jimmy is being quite ignorant. If not ignorant then he is at least being extremely rude to say that to his best friend. Mohamed ignores the situation because he doest want to start a conflict that won't end.

I would have trouble reading that so heres the shortened version:

A friend bashed another friends religion.

Other friend is offended as am I because I believe that everyone has a right to believe in what they like.

I don't want to loose the offending friend but I can't sit idly and awkwardly by without doing something.

What should I do?