suppose that 1983 is the base year for the consumer price index (CPI) and in 2019 the cpi is 254. What does this 254 mean

d) What cost $100 in 1983 on average cost $154 more in 2019.

Explanation:

As we know that

Nominal Value = (Real Value ÷ 100) × CPI

So,  

Value in the year 2019 is

= ($100 ÷ 100) × 254

= 254

Now the average cost is

= 254 - 100

= 154

This amount is more in the year 2019 as compared with the 1983 year

Hence, the correct option is d.

We simply applied the above formula so that the correct statement could come

And, the same is to be considered

The estimated Bad Debt Expense for the period is $13,600

Explanation:

Quill Industries estimates of uncollectible receivables resulting from the aging analysis equals $20,000. The company uses the aging of accounts receivable method and the Allowance for Doubtful Accounts has credit balance of $6,400 before adjusting.

Bad debt Expense = $20,000 - $6,400 = $13,600

The entry:

Debit Bad debts expense $13,600

Credit Allowance for doubtful accounts $13,600