Merchandise with an invoice price of $4,000 was purchased on February 3, terms 3/15, n/60. The company uses the gross method to record purchases and a perpetual inventory system. The entry to record a cash payment of this purchase obligation on February 17 is: Debit Accounts Payable $3,880; credit Cash $3,880. Debit Accounts Payable $4,000; credit Cash $4,000. Debit Accounts Payable $3,880; debit Discounts Lost $120; credit Cash $4,000. Debit Accounts Payable $4,000; credit Merchandise Inventory $120; credit Cash $3,880. Debit Accounts Payable $4,000; credit Discounts Lost $120; credit Cash $3,880.