(Accounting for uncollectible patient accounts)

The Metro County Hospital could not collect the amount billed to a patient. The patient declared bankruptcy and had no assets with which to pay his debts. Assuming the patient owed the hospital $\$ 3,000$, prepare the entry or entries necessary to record the uncollectible account if the hospital uses the allowance method. After preparing the necessary entry or entries, indicate what effect the write-off will have on the balance sheet.