C is corrent. An examination of the T-account indicates the beginning balance in Allowance for uncollectible accounts has a credit balance of $12,000. When an account is written off, a debit entry is made to the Allowance for uncollectible accounts. If the aging schedule indicates that a $50,000 allowance is required, then the ending balance in the Allowance for uncollectible accounts must be $50,000. Therefore, this answer is correct because $86,000 ($12,000 – $48,000 – $50,000) must be debited to Bad debt expense and credited to the Allowance for uncollectible accounts.
A is incorrect because uncollectible accounts expense is not equal to the beginning credit balance plus the write-offs.
B is incorrect because the write-off is not equivalent to the uncollectible accounts expense.
D is incorrect because $50,000 is the ending allowance balance, not the uncollectible accounts expense.
