Blooming Wholesale Foods allows retailers to purchase merchandise using trade credit. For Blooming, this type of transaction

A. is written off as a bad-debt expense.
B. is an unusual type of transaction between a wholesaler and retailers.
C. should be paid within thirty to sixty days.
D. is referred to as a notes payable account by Dillon's accountants.
E. creates a liability for Dillon Wholesale.


Answer: C

Business

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