Question

King Construction Company receives weekly shipments of lumber, vinyl siding, and stone slabs from one of its materials suppliers. Since King Construction Company is a regular customer, the supplier has made an agreement to give the company discounts if it pays its bill early. This is an example of

Answer 1

Answer:

Trade credit

Explanation:

The trade-credit refers to the increase in credit by the suppliers. There is an option to purchase now and pay later. The company could take order with respect to material delivery, equipment on credit instead of paying in cash on an immediate basis. This can be done by using the trade credit

Therefore according to the question, since it is mentioned that there is an agreement that if pay the bill on early so the company provides the discount

So, this is an example of Trade credit

Answer 2

This is a Trade Credit illustration.

A trade credit agreement is a contract that allows you to buy products and services without having to pay for them right away. The buyer and the vendor come to an agreement, and the seller delivers the goods and services purchased. It is more beneficial to the expansion of a firm.

According to this knowledge, King Construction Firm is a regular customer, and there is an understanding that if the bill is paid early, the company will give a discount.

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