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Simmons Company sells on terms of 3/10 net 30. The collections department estimates that 30% of customers pay on the tenth day and take discounts:

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Simmons Company sells on terms of 3/10 net 30. The collections department estimates that 30% of customers pay on the tenth day and take discounts: 50% pay on the thirtieth (30th) day, and the remaining 20% pay, on average, 40 days after purchase. What is the average collection period? 27 days 40 days 80 days 26 days

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