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Suppose that a company has the following Accounts Receivable collection pattern: Paid in the month of sale 30% Paid in the month following sale 70%

Suppose that a company has the following Accounts Receivable collection pattern: 

Paid in the month of sale 30% 

Paid in the month following sale 70% All Sales are on credit. 

If Credit Sales for January and February are $200,000 and $100,000 respectively, the cash collection for February is:

a. $217,500 

b. $210,000 

c. $140,000 

d. $100,000 

e. $130,000

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