George's Wholesaling agrees to purchase 1,000 pounds of bananas from Chickadee Exports at 39 cents per pound.George's does not have the money for the bananas now,but promises to pay in two months.Chickadee Exports wants George's business but needs the money now.Chickadee (as drawer)prepares an instrument ordering George's (as drawee)to pay $390 to Primary Bank (the payee).This is an example of

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This is an example of a trade acceptance, which is a type of negotiable instrument used in business transactions where the buyer (drawee) agrees to pay the seller (drawer) at a later date. In this case, Chickadee Exports is the drawer and George's Wholesaling is the drawee, and they have agreed on the terms of the sale (1,000 pounds of bananas at 39 cents per pound). The trade acceptance orders George's to pay $390 to Primary Bank, indicating that Chickadee is willing to wait for payment as long as the payment is guaranteed by a third party (the bank).

George's Wholesaling Agrees to Purchase 1,000 Pounds of Bananas from Chickadee