The purchasing manager for Lips & Lashes, a makeup distributor, purchases 1,000 lipsticks from a cosmetics manufacturer, Beauty Labs. Because the two companies have a good relationship, Beauty Labs extends net 30 terms to Lips & Lashes, meaning the company will have 30 days to make full payment. This is an example of:
a) A loan
b) Trade credit
c) A mortgage
d) A lease
