THEIR Company's credit customers have a payment pattern such that none of them pay for their purchases (on credit) during the month of the sale. 70% of them pay in the month after the sale and ALL of them pay in time to get a 2% discount. 25% pay in the second month after the sale and 5% are bad debts. If the company sells $100,000 on credit in October, how much cash will THEIR Company collect for the bad debts?

Group of answer choices

a.) $5,000

b.) None of these is correct.

c.) $0

d.) Cannot be determined from the information provided.