On May $1,$ Davidson Company purchased inventory costing $$2,000$ on account with terms $\frac{2}{10},\frac{n}{30}.$ On May $18,$ Davidson pays for this inventory and records which of the following using a periodic inventory system?

$\backslash$table$[[$Event$,$Account Title,Debit,Credit$],[1.,$Accounts Payable,$2,000,],[$Cash$,,2,000],[2.,$Accounts Payable,$1,960,],[$Purchase Discounts,$40,],[$Cash$,,2,000],[3.,$Accounts Payable,$2,000,],[$Purchase Discounts,,$40],[$Cash$,,1,960],[4.,$Cash,$2,000,],[$Accounts Payable,,$2,000]]$

Multiple Choice

Option $1$

Option $2$

Option $3$

Option $4$