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In June, The Seascape Gallery sells an oil painting to Collegiate Systems, Inc. Collegiate promises to pay for the painting in three months. The gallery prepares a draft ordering Collegiate Systems to pay $3,000 to First Bank on September 15. Collegiate Systems signs the draft. The draft is aGroup of answer choicesSight draftFuture draftTime draftTrade draft

User Limon
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The correct answer is C. Time draft

Step-by-step explanation:

In trade, a time draft is a document that acts as credit, this means the buyer of the product can get the product and pay it after a certain amount of time, which is stipulated through the draft. Moreover, this draft is accepted by both the buyer and the seller, and it is most commonly used in international trade. This type of draft is the one used in the case presented because the payment will occur in the future rather than immediately as it occurs in other types of drafts such as a sigh draft or in regular trade drafts. Also, in this case, the buyer obtained the good (oil painting) before payment occurs and the draft acts as a promise of paying.

User Mpowroznik
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