"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."

Question

02-11-2019
Business

contestada

"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."

Respuesta :

Otras preguntas

How was Christianity spread during the Middle Ages? A. Schools included teachings of the Catholic Church as part of the curriculum. B. Monks traveled through Eu

What does korosu tame mean? All i know is that it's japanese.

what will be the answer ??

Which reflection rule, if any, can be used to prove that rectangle A(-8, -3), B(-2, -3), C(-2, -6), D(-8, -6) and rectangle A'(8, -3), B'(2, -3), C'(2, -6), D'

0 ft elevation, diver is underwater at depth of 138 ft. In this area, the ocean floor has a depth of 247 ft. A rock formations rises to a peak 171 to above the

How would I solve this equation?

Assume that a set of test scores in an introduction to finance class is normally distributed with a mean of 72 and a standard deviation of 8. use the 68-95-99.7

How was the new imperialism of the late nineteenth century different from earlier forms of imperialism

An artisan sells handmade journals. His products are successful. Based on the chart, what will happen next? (4 points)

HELP FAST !!!!!Read the following newspaper excerpt, then answer the question that follows:  "A David and Goliath Battle Rages Over Sunshine Park"  Chelsea Spre

andromache andromache · Answer 1 · 2019-11-02T07:23:14+01:00

Answer:

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