A buyer uses a periodic inventory system, and on December 5 , it purchases \( \$ 4,000 \) of merchandise on credit terms of \( 2 / 10, n / 30 \).

To solve this problem, we need to analyze the purchase made by the buyer under the periodic inventory system and the credit terms provided. ### Known Conditions: 1. **Purchase Amount**: \( P = 4000 \) 2. **Credit Terms**: \( 2/10, n/30 \) - This means the buyer can take a 2% discount if the invoice is paid within 10 days. Otherwise, the net amount is due in 30 days. ### Steps to Solve: 1. **Calculate the Discount**: - If the buyer pays within 10 days, they can take a 2% discount on the purchase amount. - The discount can be calculated as: \[ D = P \times \frac{2}{100} \] 2. **Calculate the Amount After Discount**: - If the discount is taken, the amount to be paid after the discount is: \[ A = P - D \] 3. **Determine Payment Options**: - If the buyer pays within 10 days, they pay \( A \). - If they do not pay within 10 days, they pay the full amount \( P \). Now, let's perform the calculations. ### Calculation of Discount and Amount After Discount: 1. Calculate the discount \( D \): \[ D = 4000 \times \frac{2}{100} = 80 \] 2. Calculate the amount after discount \( A \): \[ A = 4000 - 80 = 3920 \] ### Summary of Payment Options: - If paid within 10 days: \( \$ 3,920 \) - If paid after 10 days: \( \$ 4,000 \) This concludes the analysis of the purchase under the periodic inventory system with the given credit terms.