"which one of the following statements is true?
a. bad debts expense is a real account and remains open at the end of the fiscal period, while allowance for doubtful accounts is a nominal account and is closed at the end of the fiscal period.
b. bad debts expense and allowance for doubtful accounts are both nominal accounts and are closed at the end of the fiscal period.
c. bad debts expense and allowance for doubtful accounts are both real accounts and neither are closed at the end of the fiscal period.
d. bad debts expense is a nominal account and is closed at the end of the fiscal period, while allowance for doubtful accounts is a real account and remains open at the end of the fiscal period."

d. Bad Debts Expense is a nominal account and is closed at the end of the fiscal period, while Allowance for Doubtful Accounts is a real account and remains open at the end of the fiscal period."

Explanation:

Mainly there are three types of accounts which includes:

1. Real Account: This account is applied with the asset part of the balance sheet.  

2. Nominal account: This account records all expenditures, incomes, gains, and losses. The expenditures and losses are debited whereas income and gains are credited

3. Personal Account: This account records the personal accounts like debtors account, creditors account. etc

So according to the given situation, the bad debt expense is a nominal account as it is an expense and record in the debit side of the income statement.

Whereas, the allowance for doubtful accounts is a real account as it is shown in the asset side of the balance sheet under the debtor account. The treatment of this is to get deducted from the debtor's account. So, it is a contra asset account

Thus, the bad debt expense is closed and allowance for doubtful account remains open at the end of the fiscal period

answer///the stewardship worldview;