A Lightbulb Company Is Interested in the Lifespan of Their

question 52

Short Answer

A lightbulb company is interested in the lifespan of their lightbulbs.They have 20,000 lightbulbs burning and have collected the following information.
After 2 months, 98% of the bulbs were still working.
After 8 months, 80% of the bulbs were still working.
We summarize all the data collected below: (Read carefully: the data was not collected at regular intervals.)
How many bulbs out of the original 20,000 burned out during the first 4 months?

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Definitions:

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, considered a liability until fulfilled.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value due to age, wear, and tear, or obsolescence.

Accrue Interest

The process of recognizing interest earned or incurred on an outstanding debt over a period of time.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period, simplifying the recording of transactions.