Merchandise with an invoice price of $2,000 was purchased on February 3, terms 2/15, n/60. The company uses the net method to record purchases. The entry to record the cash payment of this purchase obligation on February 27 is:

	Debit Accounts Payable $2,000; credit Merchandise Inventory $40; credit Cash $1,960.
	Debit Accounts Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.
	Debit Accounts Payable $2,000; credit Cash $2,000.
	Debit Accounts Payable $1,960; credit Cash $1,960.