Tracey owns a custom jewelry business. One of her suppliers brings her a delivery of fine gems on the 1st of each month, which she can pay for anytime during that month. If she pays for the gems by the 15th of the month, her supplier gives her a 10 percent discount off the cost. Which of the following short-term liabilities does this scenario best describe?

Multiple Choice

• a line of credit

• a loan

• an account receivable

• a factor

• a trade credit